Dangote Cement signs $1bn deal with Sinoma for 12 new plants across Africa

Dangote Cement Plc has signed a $1 billion agreement with Sinoma International Engineering for the construction of 12 new cement plants and the expansion of existing facilities across Africa.

The deal was disclosed by MarketForces Africa following the signing of a Memorandum of Understanding (MoU) in Lagos on Friday.

The agreement supports Dangote Cement’s drive to scale production, expand its market footprint, and consolidate its leadership across the continent.

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**What they are saying **

Aliko Dangote, President and CEO of Dangote Industries Limited, described the projects as key enablers for reaching a production capacity of 80 million tonnes per annum (MTPA) by 2030. He said the expansion aligns with the Group’s Vision 2030 agenda, which targets $100 billion in revenue.

• _“Dangote Cement Plc, a subsidiary of Dangote Industries Limited, at the weekend in Lagos, signed a landmark agreement with Sinoma International Engineering for the construction of 12 new projects and the expansion of others across Africa,” Dangote said. _
• _“The landmark agreement, with an estimated investment of over $1 billion, reinforces the Company’s long-term growth strategy and aligns with the broader aspirations of the Dangote Group’s Vision 2030,” the MarketForces report read. _
• _Dangote added that the projects will strengthen the company’s dominance in Nigeria, increase export volumes, optimize existing assets, and improve operational efficiency across its African footprint. _

The agreement will see Sinoma collaborate on new integrated plants, brownfield expansions, and modernization initiatives designed to enhance operational performance in key markets.

**Project locations and capacity expansion plan **

The projects cover multiple countries and include new integrated production lines as well as expansions of existing facilities.

• Nigeria: Itori, Apapa, Lekki, Port Harcourt, Onne, and Northern Nigeria (including a satellite grinding unit).
• Ethiopia: A new production line to support growing local demand.
• Other African markets: Zambia, Zimbabwe, Tanzania, Sierra Leone, and Cameroon.

The expansions aim to increase installed capacity, optimize assets, and improve operational efficiency across Dangote Cement’s African operations.

These projects are expected to reinforce the company’s market leadership and support broader infrastructure development across the continent.

**More insights **

Dangote Cement has also strengthened energy security through Gas Sales and Purchase Agreements (GSPA) with subsidiaries of the Nigerian National Petroleum Company Limited.

This ensures adequate gas supply to support expanding production and adoption of cleaner fuels such as Compressed Natural Gas (CNG) and Autogas.

• Ongoing plant upgrades, capacity expansions, and deployment of energy-efficient technologies aim to reduce operating costs and carbon emissions while boosting competitiveness.
• The strategic partnership reflects Dangote Cement’s commitment to making Africa self-sufficient in cement production and creating jobs.

The company continues to deploy modern technologies across integrated plants, grinding facilities, and distribution hubs to improve efficiency and reliability.

**What you should know **

Dangote Cement Plc (DANGCEM) posted strong nine-month results for the period ended September 30, 2025, driven by higher pricing in Nigeria and efficiency gains despite slightly lower overall volumes.

• Revenue: N3.15 trillion, up 23.2%
• EBITDA: N1.43 trillion, up 57.2%, margin 45.3%
• Profit after tax: N743.3 billion, up 166.3%
• Earnings per share: N43.82, up 164.8%
• Net debt: N958 billion, down from N2.06 trillion
• Group volumes: 20.2Mt, down 2.1%

In Nigeria, revenue grew 42.4% to N2.18 trillion, with volumes slightly up at 13.2Mt. Cement and clinker exports increased 23% to 1.1Mt.

Pan-African operations saw revenue decline 3.4% to N1.06 trillion, and volumes fall 5% due to political and liquidity challenges in some markets.