Dangote Sinotruk Automobile expands to enhance local content and provides more jobs

Sierra Leone Telegraph: 10 November 2018:

As the budding automobile company, Dangote Sinotruk West Africa Limited entered another phase in its expansion drive. The Company has said that it was increasing its local input into the assembling plant to up to 60 percent, even as it plans to roll out commercial vehicles soon.

The expansion drive, which is part of the backward integration plan, is meant to enhance value addition and local content.

Photo: L-R, Group general manager Dangote Sinotruk West Africa limited, Hikmat Thappa, Lagos state director of commerce, Akeem Adeniji, Lagos state commissioner for commerce, industry and Cooperatives, Olayinka Oladunjoye, Dangote Sinotruk general manager Prakash Kharat during the Lagos state commissioner for commerce on a facility tour of Dangote Sinotruk Assembly plant in ikeja Lagos.

Group General Manager of the Company, Hikmat Thapa made this known during a facility tour of the Ikeja plant by the Lagos State Commissioner of Commerce, Industry and Cooperatives, Mrs. Olayinka Oladunjoye.

He said having completed phase one of the project, the Company has embarked on phase two which is about adding facility for cab welding, painting and trimming.

Thapa stated that the third phase of the project expansion would be to add the facility that would be used to fabricate, paint and assemble different types of trailer bodies, load bodies with dual and triple axles, including tipper bodies and tankers.

He explained that Dangote Sinotruck has installed capacity to assemble and produce 15 –16 trucks per shift or 10,000 trucks annually and will create over 3000 jobs across Nigeria.

He said that the company is planning to establish welding and painting shops so as to fabricate and paint truck cabins and trailers. This will enhance local content of Completely Knocked Down (CKD) operation of commercial vehicle manufacturing,

“In the next one year, we have on our agenda to assemble and fabricate truck cabins, different type of trailers, tipper bodies and tankers etc. in our plant to increase value additions up 40 – 60 %”.

The Automobile company said it hopes to expand sales to all the neighbouring West African States, saying “we are targeting to sell our products to ECOWAS countries in addition to fulfilling local market requirement.”

The Commissioner expressed surprise at the level of activities going on at the plant and commended the entrepreneurial spirit of Alhaji Aliko Dangote, the Chairman of the Company whose businesses are geared towards touching lives.

Mrs. Oladunjoye was optimistic that with the level at which the Company was going, it will soon be a matter of time when Nigerians would be able to purchase cheap vehicles.

He enjoined other businessmen to emulate Alhaji Dangote in the efforts to create jobs through manufacturing rather than importation of finished products. She promised to relay the message of what she saw back to the state governor.

Dangote Sinotruk West Africa Limited  is a Joint Venture between Dangote Industries Limited and Sinotruck of China with a total investment of $100 million, with the Nigerian Dangote Industries owing 65 per cent equity and 35 per cent by Sinotruk.

Photo: L-R, Group general manager Dangote Sinotruk West Africa limited, Hikmat Thappa, Dangote Sinotruk project manager, Kogis Moses, Lagos state director of commerce, Akeem Adeniji, Lagos state commissioner for commerce, industry and Cooperatives, Olayinka Oladunjoye, during the Lagos state commissioner for commerce on a facility tour of Dangote Sinotruk Assembly plant in ikeja Lagos.

The company is established to assemble and produce full range of commercial vehicles covering heavy duty truck, medium truck, light truck and other semi-trailers, etc.

It aims to meet an expected current demand of the segment of Automobiles required for logistics, construction, food and beverage industries in Nigeria to support the government’s efforts in boosting economic development across the country.

The objectives of establishing Dangote Sinotruk West Africa Limited is to provide employment opportunities for Nigerians, improve local automobile industry, add equipment base and achieve technological advancement in Nigeria, and in turn to promote economic development.

The Company is also to form a production hub at Lagos for heavy-duty and light duty trucks and commercial vehicles in West Africa. The production base will not only serve the market demand in Nigeria but also can fulfil the requirements of neighbouring ECOWAS countries.

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