{
  "id": 9575301,
  "title": "Dangote Cement Targets 80m Tonnes Capacity, To Fund Expansion From Cash Flow",
  "url": "https://urgent.news/2026/09/24/dangote-cement-targets-80m-tonnes-capacity-to-fund-expansion-from",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-24T15:19:49.000Z",
  "source": {
    "name": "This Day",
    "slug": "this-day",
    "url": "https://www.thisdaylive.com/2026/09/24/dangote-cement-targets-80m-tonnes-capacity-to-fund-expansion-from-cash-flow/"
  },
  "original_language": "en",
  "account": "Dangote Cement aims to double its cement production capacity to 80 million tonnes over the medium term. The strategy centers on constructing brownfield projects in existing markets to optimize cost-efficiency. At a recent presentation in London, Group Managing Director/CEO Mr. Arvind Pathak revealed the company's growth roadmap and funding approach. The next expansion phase will add approximately 25 million tonnes to the current capacity, reaching the ambitious target of 80 million tonnes. Pathak emphasized the importance of employing every possible lever to achieve this goal, primarily through brownfield developments. He explained that pursuing brownfield expansions offers several advantages, such as reduced capital expenditure, shorter project timelines, and a relatively quick return on investment (payback period of 2.5 years). Additionally, the company has already secured land and upgraded power and water infrastructure at its factory sites, further streamlining the execution process. The demand surge driving the expansion plans stems from Dangote Cement's operations across various regions. The group recently launched a grinding plant and plans additional expansions, including projects in Srirangam, India, and capacity additions in Cameroon and Senegal, all of which will require larger clinker supplies. Around 60% of the new capacity will be generated using Dangote Cement's own clinker, ensuring better utilization of output, while the remaining portion will be a mix of third-party customers, focusing on strategic market areas adjacent to neighboring countries. Dangote Cement intends to fund the CAPEX expansion primarily through internal sources, with a surplus of cash flow and favorable supplier credit systems, which facilitate equipment financing and cash preservation. Currently, the company's leverage is healthy at 0.1 times, even showing a slight negative value, providing ample room for additional funding if necessary. By harnessing its scale, optimizing costs, and increasing volume across its Pan-African operations, Dangote Cement aims to replicate its low-cost model success in Nigeria and solidify its position as a dominant player in competitive markets.",
  "summary": "Dangote Cement is planning to increase its total cement production capacity to 80 million tonnes in the medium term, with its expansion strategy focused on low-cost brownfield projects in existing",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}