Dangote sets up truck assembly plant in Lagos

Billionaire Aliko Dangote has embarked on the establishment of a $100 million worth vehicle assembly plant project in Lagos

The plant will be churning out heavy duty trucks on which his conglomerate, the Dangote Group spends huge amount on importation to distribute it’s products both locally and cross African countries.

Dangote is partnering a leading Chinese company, National Heavy Duty Truck Group Company Limited, SINOTRUCK, to produce several thousand of trucks used mainly for haulage business from its newly promoted assembly plant at Ikeja, Lagos.

The decision to go into the truck assembly plant project was informed by the need to conserve forex in view of the current economic recession that is facing the country.

The deal which is expected to produce 10,000 trucks per year was signed in May 2014 in China, making it the eighth of Shandong, China (SINOTRUK), to be built abroad.

According to the deal agreement, the plant is 60% owned by Dangote Group, trading under Dangote Industries Limited, leaving SINOTRUK with the remaining 40% equity stake.

Consequently, Dangote Agro Sacks Limited, which occupied the Oba-Akran Ogba premises of the former Nigerian Textile Mills, until recently, has been relocated closer to the group’s major operational hubs, particularly the cement plants in Obajana, Kogi State and Ibeshe, Ogun State.

The assembly plant is expected to generate employment for an estimated 3,000 workers, when fully operational.

Nigeria remains one of the most important markets for SINOTRUK, with Dangote Group operating the largest truck fleet in Africa with over 10,000 trucks in the distribution of its products, like cement, sugar, flour and pasta, among others, even in its plants across the continent.

Chief Corporate Communication Officer of Dangote Group, Mr. Anthony Chiejina confirmed that the project has taken off and that when fully operational, the nation would be spared the huge amount of forex spent in the importation of heavy duty vehicles.

Alhaji Dangote had in 2013, signed a contract in Beijing with the Chinese firm, through its chairman, Ma Chunji, for the supply of 1,700 heavy trucks and 1,700 semitrailers.