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Dangote liberalises cement distribution

Jun, 25 2012

(Nigeria) -- In order for its customers to benefit maximally from its current expansion drive, the management of Dangote Cement plc has liberalised its distribution channels by widening its sales point network.

The leading cement manufacturer had embarked on an expansion drive which has seen it adding more lines to its existing cement plants across the country with the attendant expectation that it would lead to reduction in the price of the commodity.

However, the management of Dangote Cement said it was reviewing its distribution network to ensure availability of the product by creating wider access for its customers.

This, it noted would also ensure not only the stability of price, but also guaranteeing availability at the most reasonable price.

Group Managing Director of Dangote Cement, Devakumar Edwin, said in Lagos at the weekend that the company at the height of skyrocketing price of cement, had acquired 5000 trucks to boost its logistics and pave the way for even distribution of the product across the nation.

According to him, having solved the problem of logistics, the next phase is to ensure a wider distribution depot and register more dealers and bring the product closer to the customers.

He explained that “with Obajana’s 10. 25mtpa, and its fourth line under construction, the company’s production capacity would be far above the nation’s demand.

Recall that the company’s Benue plant of 3.5mtpa is producing to capacity. When added to the 6mtpa Ibese plant production, the company will have a total production capacity of 19.75mtpa.

“What we are doing now is to liberalise the distribution network by increasing our depots and registering more credible distributors. All we required is the Certificate of company registration, two passport photographs and letter of intent, he said.

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