Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Industries Company News

Dangote Group moves into road construction; Possible benefits

Onome Ohwovoriole by Onome Ohwovoriole
May 8, 2017
in Company News
CORPORATE ACTION: Dangote Cement Appoints Independent Non-Executive Director
Share on FacebookShare on TwitterShare on Linkedin

Nairametrics| The Dangote group seems to be an expansion drive this year. From the kick off a truck assembling plant in Lagos, the company has moved into road construction. Ag Dangote, a joint venture with a German firm has constructed a 500m concrete road in Benin City, Edo state. Prior to this, Dangote cement had constructed a few roads, mostly around its areas of operation and for Corporate Social Responsibility (CSR) projects such as the Obajana-Kabba road in Kogi State.

Benefits for Dangote Group

Diversifying into road construction will benefit in several ways.

RelatedPosts

Aliko Dangote’s wealth drops to $19 billion, now 80th world’s richest

All Set For Zenith Bank’s 7th Annual International Trade Seminar on Non-Oil Export

  • The move into construction serves as a means of forward integration, as Dangote Cement a member of the Dangote Group, produces various types of cement.
  • Going into construction will increase the potential markets for its cement. If road construction with cement is fully embraced, it could lead to a spike in both the price and demand for cement.
  • The move into construction is an additional source of income, for periods when building activities are slow.
  • Construction of roads with cement is still somewhat of a novelty in Nigeria, so the firm has the opportunity of cornering a market still in its infancy. Aliko Dangote has always been particular about being among the top two players in any market he operates.
  • Being the largest producer of cement in the country, AG Dangote will be getting its primary raw material at the cheapest price possible.
  • The company can thus afford to charge a lower quote than competitors who would have to place orders with a cement manufacturer. Since road construction and rehabilitation is cheaper with cement than asphalt, governments in the country may decide to switch to using cement.
  • The move into construction may also be part of the pan African goals of Aliko Dangote, as Dangote cement has plants in several countries in Africa. The AG group also operates in other African countries

AG Dangote is a joint venture between Andrade-Gutierrez of Brazil and the Dangote Group. AG was founded in 1948 in Brazil, and is one of the biggest construction firms in the country. Dangote cement began in the 1990s with the importation of cement into the country, but switched to production in 2000 with the purchase of the Benue Cement Company (BCC) Gboko from the federal government.

Year to date, shares of the company are down 8.33% on the Nigerian Stock Exchange (NSE). First quarter results for the firm show revenue increasing from N140 billion in 2016 to N208 billion in 2017. Profit before tax jumped from N54 billion in 2016 to N77 billion in 2017.

News continues after this ad


 

Related

Tags: Aliko DangoteDangote Cement PlcDangote GroupManufacturing

Comments 1

  1. Anonymous says:
    May 8, 2017 at 12:00 pm

    it’s a 500 metre road, not 500km. was wondering which Space in benin City they saw to construct 500km road!

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

inq
avatrade
Stanbic bank
Mega Millions
UBN
Hot forex
Access Bank
Bankers Committee
First bank






    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • Delta Air flight to Lagos, Nigeria makes u-turn after plane developed fault in the air
    • Seplat and Mobil deal: It’s time to consider moving on
    • 24 Hours Power Supply: Ikeja Electric Sign Tripartite Agreement with Enaro Energy and Ayobo Community

    Follow us on social media:

    Recent News

    Delta Air flight to Lagos, Nigeria makes u-turn after plane developed fault in the air

    Delta Air flight to Lagos, Nigeria makes u-turn after plane developed fault in the air

    August 11, 2022
    Developing nations must be allowed to create a just energy transition – Roger Brown, Seplat CEO

    Seplat and Mobil deal: It’s time to consider moving on

    August 11, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Financial Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Metrics
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
      • Securities
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
      • Real Estate and Construction
      • Tech News
    • Economy
      • Get Data
      • Macro-Economic News
      • Research Analysis
    • Business News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com