In a strategic move to enhance local manufacturing and minimize imports, Dangote Group has announced significant investments in its truck assembly plant. According to Aliko Dangote, the initiative is part of a broader effort to add value through backward integration.
“The completion of the Ajaokuta Steel project will bolster our goal to increase local content in our assembly lines. Our facilities, which include welding and painting shops, are equipped to fabricate and paint various types of trucks and trailers, enhancing the local content of CKD input in commercial vehicle manufacturing in Nigeria,” Dangote stated.
Over the next year, the company plans to start fabricating different types of trailers and tippers at its plant, aiming to achieve a value addition of 40 to 60 percent. This move is expected to promote domestic self-sufficiency and cater to the West African regional market.
Dangote also highlighted the company’s majority ownership in Peugeot Automobile of Nigeria, located in Kaduna, where small vehicles are assembled. The truck assembly joint venture, which involves a $100 million investment, is owned by Dangote Industries (60%), Sinotruck China (30%), and Andas (5%).
The expanded operations aim to meet the growing demand for automobiles needed in logistics, consumption, and the food and beverage industry as the Nigerian government emphasizes economic development nationwide. The company is set to join the new production of Compressed Natural Gas (CNG) vehicles, a priority for the current administration.
Dangote Group has committed to purchasing 10,000 CNG trucks, with 1,500 arriving this June/July and about 500 already at the port. The company boasts an installed capacity to assemble and produce 10,000 trucks annually, which will generate approximately 3,000 jobs across Nigeria.
