Wednesday, 15 May 2013

Nigeria: Dangote Sugar Withdraws Investment From Algeria

Dangote Sugar Refinery Plc has pulled its investment from Algeria and is planning to make more acquisitions of local sugar farms to boost its backward integration programme and benefit from the Federal Government Sugar Master Plan.
DSR had planned to expand its operations to Algeria with a 1.1 million metric tonnes of sugar refining facility in that country. However, chairman of DSR, Alhaji Aliko Dangote, disclosed last Monday that the plan had been halted and all the equipment shipped back to Nigeria.
In his address to shareholders at 7th Annual General Meeting (AGM) held in Lagos, Dangote explained that the decision to pull out the investment stemmed from unfavourable policies by the Algerian government that would impede the achievement of the goals with which the investment was targeted.
However, he noted the acquisition of Savannah Sugar Company (SSC) in Numa, Adamawa State by DSR has positioned the company to operate sugar refineries in Nigeria.
"Our target is to achieve local production of 1.5 million metric tonnes of raw sugar per annum by year 2018 harvest season. In addition to Savannah, other sites will be acquired and the necessary steps taken to ensure that our foray in backward integration project becomes a good part of our success story," Dangote said.
Reviewing the performance of the company for the year ended December 31, 2012, he said despite the challenging operating environment, the company posted a remarkable performance.
According to him, turnover stood at N106.868 billion, while profit after tax was N10.735 billion in 2012 compared with N107.2 billion and N7.244 billion respectively in 2011.
"This performance is an indication of the positive outcome of the various changes and strategic initiatives implemented in the company during the year under review. Our emphasis is now on growing new markets for higher volumes, a more improved bottom-line, increased market share and value creation for all stakeholders," he said.
Speaking in the same vein, the Managing Director of the DSR, Abdullahi Sule, said the focus was to grow its market within Nigeria and Africa with high quality products, reinforced and effective supply chain and information management system.
"We will continue to build our existing competencies to enable us set the needed platform for continuous market expansion, volume growth and delivery of desired benefit to all stakeholders," Sule said.
Source: http://allafrica.com/stories/201305151171.html

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