Dangote Cement Plant

Nairametrics| Central African country, Cameroun’s major cement producers have decided to double their total production volumes to 7 million tonnes by 2018. The increased production will make the country one of the top 6 producers of cement on the continent. Nigeria is currently the largest producer with over 40 million tonnes of cement produced in the country as at 2015.

Highlight of Cement Market In Cameroun

  • ¬†3.6 million tonnes of cement are produced in Cameroun annually.
  • Estimated demand for cement is put at 2.8 million tonnes.
  • CIMAF a Moroccan based cement currently produces 500,000 tonnes.
  • Medcem a Turkish company produces 600,000 tonnes.
  • Dangote cement produces 1.5 million tonnes.

Expansion Plans

  • Dangote cement plans to double its production to 3 million tonnes by building another plant.
  • CIMAF plans to triple its production to 1.5 million tonnes by 2018.

Possible Reasons For The Increased Production

  • The firms may have fear of one producer being the dominant one by volume.
  • There may also be plans to focus on export production since the production volumes are higher than consumption.

Increased production has not reflected in lower prices

  • Despite the increase in production volumes, prices have remained stagnant.
  • That suggests the presence of price collusion, or one firm being a price setter.
  • It could also suggest that the regulatory authorities are not functioning.
  • The cement producers have however blamed the high prices on their importation of clinker a raw material used in cement production.

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy.

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