Dangote, Sinoma sign $800m deal to double Ogun cement plant capacity
By Aboki Forex —
Dangote Industries and Sinoma International have signed an over $800 million agreement to expand the Itori cement plant in Ogun State. The expansion will double the facility's production capacity from six million to 12 million metric tonnes annually.
The Memorandum of Understanding was signed in Lagos by Dangote Group President Aliko Dangote and Sinoma Chairman Lin Zhong. It marks another major investment in Nigeria's manufacturing sector.
Deal details and capacity boost
The project is designed to meet growing domestic demand for cement while creating additional capacity for exports to African and international markets. Dangote said the investment supports the company's Vision 2030 plan to raise total cement production capacity to between 90 million and 100 million metric tonnes annually.
Speaking at the signing ceremony, Dangote described the investment as a significant milestone in the company's industrial expansion plans. He reiterated Dangote Cement's commitment to supporting Nigeria's economic development.
Dangote said: “This $800 million investment represents another bold step in our commitment to strengthening Nigeria’s industrial base and reinforcing our leadership in Africa’s cement industry.”
He added: “This project reflects our unwavering confidence in the Nigerian economy and our determination to contribute meaningfully to economic growth, job creation and regional trade across Africa.”
Export growth and job creation
The expansion is expected to reinforce Nigeria's position as one of Africa's leading cement-producing and exporting nations. It also forms part of Dangote Cement's long-term strategy to increase production, strengthen competitiveness and drive export-led growth across the continent.
Dangote highlighted the company's long-standing relationship with Sinoma International Engineering. He noted that the collaboration has delivered several world-class cement plants across Africa over the years.
The Itori project is part of Dangote Cement's broader expansion strategy focused on increasing production capacity, improving operational efficiency and strengthening its export footprint. Upon completion, the upgraded plant is expected to become one of the company's largest production and export centres, supplying both domestic and international markets.
What it means for the naira and businesses
The project is expected to create jobs and earn foreign exchange through increased exports. For Nigerian businesses, higher local cement output could mean better supply reliability, while the forex earnings from exports support the naira over the long term.