Katsina Billionaire Begins Cement Production, Builds $1.5bn Plant in Kogi, Rolls Out First Bag
- Another Nigerian billionaire, Dahiru Mangal, has reportedly completed a $1.5 billion cement plant in Kogi state
- The facility has rolled out the first bag of cement and has promised to produce about 200 trucks daily
- The company signed a deal with a Chinese firm, Sinoma, for the facility in November 2021
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.
Katsina-born Dahiru Mangal has completed a $1.5 billion cement plant in Moba, Kogi state, and rolled out the first cement from the facility.
The Mangal Cement Company Limited officially commenced business to rival the big players such as Dangote, BUA, and Lafarge cement.
Source: Getty Images
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New facility to produce 200 trucks daily
The facility will produce about 200 cement trucks daily, which analysts say will create direct and indirect jobs.
ThisDay reports that Mangal Industries signed a deal with a Chinese company, Sinoma, to build the facility in November 2021.
The facility's initial cost was projected at $600 million, but it increased to $1.5 billion due to the naira crash.
Fahad Mangal, the company’s chief executive officer, promised a state-of-the-art, technology-driven facility that poses no threats to the environment.
The many businesses of Mangal
The Max Air boss is reportedly involved in many ventures, including transportation, textile, agriculture, oil and gas, and construction.
The development comes as Dangote Cement reportedly lost about N1 trillion in market share in July as investors’ sentiments shifted.
Dangote Cement other stocks lose N1.2 trillion
Dangote Cement, the most capitalised stock on the NGX, Dangote Sugar Refinery, and NASCON Allied Industries are the three most traded stocks under the Dangote conglomerate.
The firms’ share prices dropped by 10, 13.6, and 19.8%, respectively, translating into a market share cap loss of N1.21 trillion in the period under review.
According to reports, the NGX lost 2.28% in July, with its market cap shedding N1,09 trillion from N56.602 trillion at the beginning of the month to N55.514 trillion.
During the period, Dangote Cement dropped N1.12 trillion of its market cap, closing July with a N10.07 trillion market cap, from N11.19 trillion at the beginning of the month.
The Dangote Sugar Refinery Plc recorded a N71.06 billion market loss, moving from N522.32 billion to N451.26 billion.
Cement manufacturers agree on new price
Legit.ng earlier reported that cement manufacturers have decided to bring down the price of the product to between N7,000 and N8,000 per 50kg.
This was agreed during a meeting initiated by the minister of works, David Umahi, and attended by his counterparts from the Ministry of Industry, Trade, and Investment, including Doris Uzoka-Anite, in Abuja on Monday, February 19, 2024.
The meeting was part of efforts made to identify the underlying reasons for the abrupt increase in commodity prices.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
