Targets West African market, 3,000 jobs
Dangote Sinotruk West Africa Limited, assemblers of Sinotruk in Nigeria, has disclosed that when its ultra-modern assembly plan in Lagos reaches it full capacity, it would be producing about 20 to 30 trucks daily and about 10, 000 units of the truck head annually. It added that the plant was set up to cater for the truck needs of Nigeria and the West African market.
“When we develop the capacity to meet our 24-hour production, we will be producing 20 to 30 trucks daily and we will be producing for West Africa,” General Manager, Dangote Sinotruk W/Africa Limited, Daniel Biju told motoring journalists during a facility tour of the Ikeja, Lagos based plant on Tuesday.
Biju also said that the plant, which started production on completion of its first phase, is currently producing about five to six trucks daily at SKD level.
“But this will be for a short period,” and for now we are employing just about 200 Nigerians. He also disclosed that when the second phase of the plant starts around May/ June, this year, it will be producing at CKD level, adding that the management intends to source more of its inputs locally to increase the percentage of the local content in the vehicles.
Biju, who vouched for the high standard of the Dangote Sinotruk, stated that even as they are using German technology, the quality assurance unity of the assembly firm ensures that they highest standards for which Sinotruck of China is known for is strongly adhered to.
He further said that Dangote Sinotruk holds the sole franchise for the assembling of in West Africa, all former dealers/importers of the Sinotruk will now come under the company in the distribution network it plans for the sub-region.
Earlier, the Group General Manager, Products, Dangote Group, Hikmat Baha dur Thapa, had disclosed that the company has made an upfront investment of $30 million in the joint venture assembling firm.
He disclosed that the ownership structure is Dangote Group has 65 per cent, Sinotruk of Hong Kong, 30 per cent, and Andaz Limited, 5 per cent.
Thapa further said that the company has a total of $ 100 million investment plan in the truck assembly plant.
According to him, the plant which was set early this year, was set up to produce a full range of commercial vehicles covering heavy duty truck, medium truck, light truck and other semi-trailers and etc.
“It aims to meet an expected increased demand for logistics, construction and other industries in the country as the government focuses on boosting the economic development across the vast country.
“The company will assemble and produce 10,000 trucks annually. It is expected to create 3000 direct jobs for Nigerian on completion, even as it would have the capacity to assemble and produce 16 trucks a day and would export to West Africa.
“We are in the industry to play our role to develop heavy-duty truck industry in Nigeria. Provide new employment opportunities, improve local automobile technology, equipment and technology level and promote the economic development in Nigeria.
“We also intend to form a production base for heavy-duty trucks and commercial vehicles in West Africa.
With the formation of the production base, not only the market demands in Nigeria can be met, but also the requirements of covering the neighboring countries will be gradually met.
Make contributions to build friendly relationships between China and Nigeria,” he said.
Dangote Industries Limited is the largest manufacturing conglomerate in West Africa established in May, 1981 with the products covering cement, fertilizer, sugar, flour, salt, pasta and drinks, while it also provides services in petroleum, natural gas, communications and steel and iron.