Dangote Explains Why He Invested in Vehicles, Competes with Innoson as He Names Real Owners of Plant

Dangote Explains Why He Invested in Vehicles, Competes with Innoson as He Names Real Owners of Plant

  • Dangote has explained that his newly launched project Dangote Sinotruk West Africa comprises a total investment of over $100 million
  • The billionaire revealed that Dangote Industries owns 60% of the facility, Sinotruk China owns 30%, and Anders owns 5%
  • Dangote noted that he decided to start truck assembly in response to the need for cars in Nigeria's logistics, and other industries

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The chairman of Dangote Industries Limited, Aliko Dangote, has revealed the real owners of his recently launched project, Dangote Sinotruk West Africa, a fully knocked down CKD truck assembly plant recently opened in Lagos.

Dangote explains why he invested in vehicles
Dangote's choice to engage in truck assembly is a response to the need for automobiles. Photo Credit: Dangote Group
Source: UGC

As a joint venture with a total investment of over $100 million, he stated that Dangote Industries owns 60% of the plant, Sinotruk China owns 30%, and Anders owns 5%. He disclosed this while giving a speech at the plant’s inauguration.

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Senate President Godswill Akpabio and Lagos state Governor Babajide Sanwo-Olu were present at the June 9 opening ceremony.

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Why Dangote invested in trucks

In The Cable report, Dangote noted that the company's choice to engage in truck assembly was a response to the need for automobiles in Nigeria's construction, food and beverage, and logistics sectors.

The billionaire said:

“Our aim is to meet the expected current demand of this segment of automobiles required for logistics, construction, food, and beverages industries in Nigeria,”
“I am sure we are going to fully participate in the new CNG, which I think the government is driving. But we in Dangote, we are actually committed to buy 10,000 of the CNG trucks.”

Lagos to purchase 100 trucks

During his speech, Sanwo-Olu stated that because of the local automaker's dependability, his administration intends to purchase an extra 100 compactor trucks.

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The governor said:

“We have seen the benefit of what they are doing here. We have procured from them compactor trucks that were seen on the road in Lagos.”
“We have also publicly made another order for 100 trucks of the compactors, because we found that they are reliable.”

Also speaking, Akpabio commended the Lagos state governor and Dangote for their efforts in creating jobs for Nigerians and reducing crime in Lagos.

Akpabio said:

“I am sure even the president of the country will be glad to receive reports from us on what is going on in Lagos, and how you and the governor of Lagos are collaborating together with the federal government to take children off the streets, off criminality, into employment”

Hikmat Thapa, the group’s general manager for projects, said they are handling welding, painting, and major jobs within the plant, adding that their capacity will increase to 30,000 trucks annually with the launch of the plant.

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Innoson builds multibillion naira factory

Legit.ng reported that Innoson Vehicles Manufacturing Company Ltd (IVM), Nnewi, has built a new multibillion-naira factory to begin producing heavy-duty vehicles and various buses using Compressed Natural Gas-powered engines.

According to the corporation, the car plant can produce up to 30,000 vehicles annually.

The move comes after President Bola Tinubu's recent directive to the federal government ministers, departments and agencies to start purchasing compressed natural gas power vehicles.

Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.

Source: Legit.ng

Authors:
Zainab Iwayemi avatar

Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science (B.sc) degree in Sociology from the University of Ilorin, Kwara State. Before Legit.ng, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via zainab.iwayemi@corp.legit.ng

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