Management of Dangote Cement Plc on Wednesday concluded arrangement to temporarily close down its four million metric tonnes per annum Gboko plant, as a result of glut in the cement market.
A statement by the Group Head, Corporate Communication for Dangote Group, Mr. Anthony Chiejina, stated this in Lagos.
He said the move was necessitated by the glut in the market, which arose from the success presently being recorded with the exponential increase in local production of cement and further compounded by continued importation of subsidised cement into the country.
He said that the production figure for the first 11 months of the year showed increased local production level with supply now surpassing demand.
Total supply of cement to the market at the end of November, according to him, when compared to the same period last year, has shown a record increase of 11.4 per cent, the highest ever.
He said it was, therefore, disheartening to note that despite the glut in the local cement market, cement importation had continued, although at a reduced rate. According to him, this calls to question the rigorous implementation of the backward integration policy introduced to encourage local production.
Giving reasons for the choice of BCC for a temporary shutdown, the Dangote Group image maker said, “With the dumping of subsidised imported cement in the South Eastern market, there is no way our Gboko Cement plant can survive. In fact, employees have been put on forced leave, pending when the situation improves.”