Dangote Asian expansion?

According to a Ghanaian news source, Dangote Cement is hoping to expand into the Asian market over the next decade. It is reported that the company plans to launch in southeast Asia and Latin America once it is able to consolidate its operations in Africa.

Immediate targets for such an expansion are countries such as Nepal, Indonesia, Vietnam and Colombia, according to Armando Martinez Gallegos, director of Dangote’s Ibese plant in Nigeria.

Mr Gallegos commented, “Dangote has to first consolidate all its operations in Africa to continue the growth it has been establishing on the continent”, adding that there was not a possibility of exporting to Europe or USA as “there are only two places in the world in which the construction and cement industry is growing: southeast Asia and Africa”.

Dangote Cement has already announced plans to build a 3Mta plan in Nepal, from which is hopes to export to India to meet the demand of neighbouring countries lacking limestone reserves.

According to the IMF, the two southeast Asian countries Dangote is likely to move into, Indonesia and Vietnam, are on track for strong GDP growth. However, the two countries already have a collective capacity of 154.5Mta, with Indonesia operating an installed capacity of 63.1Mta and Vietnam 91.4Mta. Manufacturers in these countries are looking at export markets and there are worries of over supply.