Dangote reveals stake in new truck-making company and Peugeot
The chairman of Dangote Industries Limited, Aliko Dangote, has revealed the real owners of his recently launched project, Dangote Sinotruk West Africa, a fully knocked down CKD truck assembly plant recently opened in Lagos.
As a joint venture with a total investment of over $100 million, he stated that Dangote Industries owns 60% of the plant, Sinotruk China owns 30%, and Anders owns 5%.
He disclosed this while giving a speech at the plant’s inauguration. Senate President Godswill Akpabio and Lagos state Governor Babajide Sanwo-Olu were present at the June 9 opening ceremony.
Dangote noted that the company’s choice to engage in truck assembly was a response to the need for automobiles in Nigeria’s construction, food and beverage, and logistics sectors.
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The billionaire said: “Our aim is to meet the expected current demand of this segment of automobiles required for logistics, construction, food, and beverages industries in Nigeria.
“I am sure we are going to fully participate in the new CNG, which I think the government is driving. But we in Dangote, we are actually committed to buy 10,000 of the CNG trucks.”
Local content and Peugeot ownership
Aliko Dangote the new truck plant in Lagos will increase local content input in its vehicles to up to 60 percent.
He underscored 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.
According to him, the plant is into assembling and producing of four lines of commercial vehicles including heavy-duty trucks, medium trucks, light trucks, and other semi-trailers to serve the local transportation industry.
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“Dangote also owns majority shares of Peugeot Automobile of Nigeria in Kaduna where we assemble small vehicles.”
Lagos to purchase 100 trucks
During his speech, Sanwo-Olu stated that because of the local automaker’s dependability, his administration intends to purchase an extra 100 compactor trucks.
Sanwo-Olu said: “We have seen the benefit of what they are doing here. We have procured from them compactor trucks that were seen on the road in Lagos.
“We have also publicly made another order for 100 trucks of the compactors, because we found that they are reliable.”
Also speaking, Akpabio commended the Lagos state governor and Dangote for their efforts in creating jobs for Nigerians and reducing crime in Lagos. Akpabio said: “I am sure even the president of the country will be glad to receive reports from us on what is going on in Lagos, and how you and the governor of Lagos are collaborating together with the federal government to take children off the streets, off criminality, into employment.”
Hikmat Thapa, the group’s general manager for projects, said they are handling welding, painting, and major jobs within the plant, adding that their capacity will increase to 30,000 trucks annually with the launch of the plant.
Automotive joint ventures
Dangote Industries Limited, on its website, said it is in “a joint venture with Sinotruck and set up a $100 million plant to assemble trucks and cars in Nigeria for local use and export.
“The joint venture, which is 65 percent owned by Dangote and 35 percent by Sinotruck will assemble components and knocked down parts imported from Sinotruck to the Nigerian plant.
“It aims to meet the expected increased demand for transport in the country as the government focuses on boosting agriculture and farmers need to move goods across the vast country.
“The Group also has business with Transit Support Services (TSS) Limited, the assemblers of Shacman truck in Nigeria.
“The trucks will be used for diverse onshore and offshore operations in the country. Dangote Industries Limited is 90 percent the principal fleet customer for the Shacman range of trucks.
“The trucks are assembled inside the Anambra Motor Manufacturing Company (ANAMMCO) automotive assembly plant in Emene, Enugu. The total value of the investment is worth over N60 Billion.”
