Aliko Dangote, president of the Dangote Group, has opened a new truck plant in Lagos, increasing local content input in its vehicles up to 60 percent.
Speaking on Sunday at the official commissioning of Dangote Sinotruk West Africa Ltd (DSWAL), Dangote emphasised the importance of steel to the automotive industry and the economy.
“The investment in the truck assembly plant is part of our backward integration to add value and reduce imports. I believe the completion of the Ajaokuta Steel project will give a fillip to our attempt to increase local content in the assembly of our lines. We have welding and painting shops to fabricate and paint trucks and trailers of different types. This will enhance the local content of CKD input on commercial vehicle manufacturing in Nigeria.
“In the next 12 months, we will begin to fabricate different types of trailers and tippers in our plant to increase value addition of up to 40 to 60 percent to achieve domestic self-sufficiency and serve the West Africa regional market,” he said.
“Dangote also owns majority shares of Peugeot Automobile of Nigeria in Kaduna where we assemble small vehicles. We are a joint venture company with a total investment of $100 million formed for the truck assembly which is owned 60 percent by Dangote Industries, 30 percent by Sinotruck China, and 5 percent by Andas.
“We aim to meet the expected current demand of this segment of automobiles required for logistics, consumption, food, and beverages industry in Nigeria as the government focuses on economic development across the country. We are going to participate in the new production of Compressed Natural Gas (CNG) which this government is driving,” he said.
“Dangote is committed to buying 10,000 of the CNG trucks of which 1,500 are arriving this June/July. Already, about 500 are at the port. So, this company has the installed capacity to assemble and produce 10,000 trucks annually and create about 3,000 jobs across Nigeria,” he added.
Also speaking, Godswill Akpabio, senate president, lauded the Dangote Group’s investments in Lagos and other parts of the country.
“I know as you are investing here in Nigeria, you are doing the same thing in other countries, particularly in Africa including Kenya, Togo, Malawi, Senegal, Ethiopia, and other countries,” he said.
Lagos State governor, Babajide Sanwo-Olu, commended the Group’s decision to take over a moribund textile company and turn it into a productive investment.
He assured that the state government would continue to provide a conducive environment for investments and lead the way in patronage.
Alleluia is the Assistant Editor and Content Writer at LagosPost.ng. She is a prolific writer and editor, she has written features and news stories on Lifestyle, Sports, Business, Politics and B2B marketing. She is also an event coordinator, host and social media content creator.
