Business
Dangote Cement gains after plans to expand operations revealed
Nigeria’s Dangote Cement shares rose sharply on Monday after the firm, owned by billionaire Aliko Dangote, announced plans to expand further.
Dangote Cement shares rose 7.8 percent on the Nigerian Stock Exchange after it said it plans to build new cement plants in Nigeria and increase local production capacity to 38.25 metric tonnes per year from 29.25 metric tonnes.
The new plants will help it cut the cost of production and lower product prices in the market, it said.
The Nigerian Stock Exchange rebounded on Monday, ending 3 consecutive days of decline. The stock index, which has the second-biggest weighting after Kuwait on the MSCI frontier market index, gained 2.02 percent to 23,977 points.
Dangote Cement, which accounts for a third of the market’s capitalization, traded at 134.98 naira (US$0.6783) at the close.
The company has multiple projects and operations in Nigeria and 14 other African countries.
Source: Reuters