Dangote Cement to reduce capex next year

Dangote Cement to reduce capex next year
Published: 07 November 2014

Tagged Under: CAPEX Nigeria Dangote Cement 

Dangote Cement expects to slow its capital spending next year to around US$700m, as it completes most of its African expansion projects, its chief executive told Reuters on Wednesday.

Edwin Devakumar said Africa's biggest cement operation budgeted to spend around US$1.4bn this year, as it ramps up its cement works from Senegal to Zambia.

"This year we may end up with a capex of close to US$1.4bn though we expect it to come down next year to around US$700m," Mr Devakumar told the news agency, adding it was growing its direct deliveries to customers to gain market share.

The company’s cement plant in South Africa has started production under its Sephaku subsidiary, Mr Devakumar said while it has started the process of commissioning its Senegal plant. Ethiopia will start the commissioning process next month, he said.

A cement factory in Sierra Leone, which was scheduled to start this month, has been put on hold due to the ongoing Ebola crisis in the country. Mr Devakumar said that the project would start when the crisis abates.