29 September 2008
Lagos — Chief Executive Officer, Dangote Cement, Tony Hadley, has said the company is investing heavily in Benue Cement Company (BCC), in order to dramatically increase production levels and tackle a number of operational issues.
Hadley said this at the announcement of the company's half year results for the period January 1, 2008 to June 30, 2008, with a 32.39 per cent increase in turnover, compared to the same period in 2007.
The Company also reported an 8.92per cent increase in gross profit for the period.
He said, "first and foremost of these is availability and price of Low Pour Fuel Oil (LPFO). During 2007, BCC lost approximately 100 days of production, due to a lack of LPFO. During the first half of 2008, the plant did not lose a single day of production due to fuel shortage, thanks to NNPC new management. Alongside the commissioning of the second kiln, we expect the company's performance in 2009 to build substantially on the platform that we have already achieved."
The company reported and operating profit of N1,438,436,000 remaining flat, compared to the same period in 2007, as the company invests heavily in expanding production capacity to three million tons per year and has simultaneously ensured regular fuel supply to the plant in order to maintain production.
Hadley said, "Dangote Cement is investing heavily in developing local cement production capacity in Nigeria and the expansion of the BCC is a key aspect of this process. In the first half of 2008, BCC commissioned the first of its two kiln lines as planned.
The company ramped up the production of this kiln and the kiln is now stabilised and producing to its expected capacity. The second kiln is now being commissioned and will ramp up progressively over the second half of the year.
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