Dangote Sinotruk West Africa Ltd to Boost Local Content in Vehicle Production to 60% with Ajaokuta Steel

Date:

LAGOS – Dangote Sinotruk West Africa Ltd (DSWAL) plans to increase local content in its vehicle production to approximately 60% once Ajaokuta Steel Company becomes operational. The plant aims to fabricate various trailers and tippers within the next 12 months, enhancing value addition to 40-60% to achieve domestic self-sufficiency and serve the West African market.

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Alhaji Aliko Dangote, President of Dangote Group, made this announcement during the commissioning of DSWAL’s Completely Knocked-Down (CKD) plant on Oba Akran Avenue in Ikeja, Lagos. The event was attended by prominent figures including Senate President Sen. Godswill Akpabio, Lagos Governor Mr. Babajide Sanwo-Olu, and Deputy Senate President Sen. Jibril Barao.

Dangote emphasized the critical role of steel in the automotive industry and the economy, highlighting the investment in the truck assembly plant as part of a strategy to enhance local value and reduce imports. He noted that Dangote Sinotruk assembles and produces a range of commercial vehicles, including heavy-duty trucks, medium trucks, light trucks, and semi-trailers, serving the local transportation industry.

“We have welding and painting shops to fabricate and paint trucks and trailers of different types to boost local content in our CKD operations,” Dangote stated. He also mentioned that the completion of the Ajaokuta Steel project would significantly support these efforts.

Dangote Sinotruk, a joint venture with an investment of $100 million, is owned 60% by Dangote Industries, 30% by Sinotruck China, and 5% by Andas. The company aims to meet the current demand for commercial vehicles in the logistics, food, and beverage industries as Nigeria focuses on economic development.

Additionally, Dangote Sinotruk plans to enter the production of Compressed Natural Gas (CNG) vehicles, aligning with government initiatives.

Senate President Akpabio commended the Dangote Group’s extensive investments in Nigeria and across Africa, which have provided employment for thousands. Governor Sanwo-Olu praised Dangote’s revitalization of a moribund textile company and assured continued support for such investments. He also announced a new order for 100 Howo Sinotruk trucks, bringing the total purchased by his government to 200.

The Dangote Sinotruk plant, designed to produce about 16 vehicles per day in one shift (approximately 10,000 units annually on a CKD basis), showcased a range of heavy-duty trucks during the commissioning ceremony, emphasizing its capacity to meet the demands of both the Nigerian and larger regional markets.

By Naija247news
By Naija247newshttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

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