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Tuesday, 4 February 2014

Dangote Boosts Sugar Self Sufficiency with $35m Investment


04 Feb 2014
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Aliko Dangote

By Crusoe Osagie

Dangote Sugar has demonstrated its commitment to the realisation of the national sugar master plan with the purchase of farm machinery worth $35 million from Panafrican Equipment.
The Panafrican Equipment Group is a frontline company in provision of  mining and construction grade equipment and after sales support solutions.
Speaking at the equipment handover ceremony, weekend at Tin Can Island Port Complex, Apapa, Lagos, Nigeria, the Group Managing Director of Panafrican Equipment, Scott McCaw, described the sale as a ‘landmark sale’ adding it is Panafrican’s biggest deal within the agricultural sector and in Africa. He opined that the sale is in line with the Nigerian 2010 transformation agenda to drive growth in the agricultural sector.
He stated that “We are delighted to have been chosen by Dangote Sugar as a major supplier for their agricultural expansion project in Sugar production in Nigeria. We look forward to building on this relationship and to being their partner for development in Nigeria now and in the future. As the sale includes a long-term maintenance support and parts supply contract, we fully expect to maintain a critical role in helping Dangote Sugar achieve their goals in the sugar backward integration project”.
Group Managing Director, Dangote Sugar Refinery, Graham Clark, in his comments said “This purchase is in line with the Backward Integration Policy (BIP) of the Federal Government of Nigeria and National Sugar Development Council (NSDC). This is yet another milestone in the Dangote Sugar journey as we work towards the achievement of our strategic sugar master plan to produce 1.5 million metric tonnes of sugar per annum, locally.”
Dangote Sugar is actively pursuing a backward integration master plan with a target of producing a total of 1.5 million tons of sugar locally per annum.  The subsidiary, Savannah Sugar Company Limited, Numan, Adamawa State is geared to meet this target. Savannah Sugar is located on 32,000 hectares of land with a 50,000 MT/PA sugar production capacity. Currently, the company has 5,000 hectares on cane which is now being harvested for sugar production. 
In addition, Dangote Sugar has commenced the acquisition of additional hectares of land allocated across Nigeria for the project. Plans are underway for the investment of additional N180billion towards the realization of the Dangote Sugar Project. The locations are in Sokoto, Kebbi, Kogi, Kwara, Jigawa, Taraba States amongst others.

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