As part of efforts to stimulate growth in the nation’s construction and building sector, Dangote Cement has slashed the price of its 3X bag of cement in the local market.
The move to cut the 3X bag of cement by N6,000 per metric ton, was an attempt to boost cement consumption and compete with imports, the company said in a statement signed by its Chief Executive Officer, Onne Van Der Weijde,
He said that the management decided to cut the price of the 3X cement brand in local market to allow Dangote to achieve strong returns and prompt development in the building industry.
The CEO said the company hopes the lower prices will help increase export sales to neighbouring countries that patronise Dangote Cement products to develop their construction, building sector.
“We hope that reducing the cost of cement will help to stimulate building work across Nigeria at a time when the economy is in need of a boost,” Van der Weijde said.
“We believe our cost-saving initiatives and new pricing strategy will help to support the naira by reducing unnecessary imports and by enabling us to generate valuable foreign exchange earnings.”
The statement stated that about 42 per cent of Dangote’s cement sales by volume were sold outside of Nigeria in July, compared with 22 per cent in the first six months of the year, and just 8 per cent in 2014.
Before the price increase in December, Dangote had reduced the cost of cement in November, causing a more than 20 per cent slump in the market.
Speaking at an industry forum in Lagos, recently, President Dangote Group of Companies, Alhaji Aliko Dangote, said the local market is very strategic for the company. He said this in continuation of its successful transformation in making the Nigerian market the centre point, adding that Dangote Cement has made Nigeria, from being the biggest importer of cement to a major producer and net exporter of cement.
He said: “Today, Nigeria is not only self-sufficient in cement, but is indeed a net exporter.”
