The plant is the result of a partnership between the Dangote group and Sinotruck, a Chinese heavy-duty truck company.
“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,” a statement by the company read.
“The deal, worth $100 million, expected to have an assembly plant that will produce 10,000 trucks per year, was signed in May 2014, in China.
“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.”
Anthony Chiejina, chief corporate communication officer of Dangote Group, confirmed the project had taken off and that when fully operational, the nation would be spared the forex expense of importing the heavy-duty vehicles.
He explained there would be room for the expansion of the project in years to come, saying: “As it meets the national truck demand, it will explore exportation to neighbouring countries to generate foreign exchange for the nation.”
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. Click to signup for FREE news updates, latest information and hottest gists everyday
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