- Alhaji Aliko Dangote reiterated DSWAL’s commitment to achieving 60% local content in its vehicles, supported by Ajaokuta Steel Company
- Dangote emphasized the role of the truck assembly plant in enhancing local value and curbing imports, aligning with backward integration strategy
Alhaji Aliko Dangote, President of the Dangote Group, has reiterated the commitment of Dangote Sinotruk West Africa Ltd (DSWAL) to elevate local content in its vehicles to a target of 60 percent.
This ambition is set to materialize with the operationalization of the Ajaokuta Steel Company.
Alhaji Dangote expressed this resolve on Sunday during the inauguration of DSWAL’s fully knocked down (CKD) plant on Oba Akran Avenue in Ikeja, Lagos.
The commissioning ceremony was attended by Senate President Godswill Akpabio, Governor Babajide Sanwo-Olu of Lagos, Deputy Senate President Jibril Barau, Senators, and other dignitaries.
Dangote remarked, “Establishing the truck assembly plant aligns with our backward integration strategy to enhance local value and curb imports. Your Excellency, your mention of Ajaokuta Steel in your address yesterday gives us hope, as completing this project would bolster our efforts to ramp up local content in our assembly lines.
“We have equipped welding and painting workshops for fabricating and painting various types of trucks and trailers, thereby boosting the local content of CKD operations in commercial vehicle manufacturing in Nigeria.
“Over the next 12 months, we plan to fabricate diverse trailers and tippers in our facility, aiming to elevate value addition to between 40 and 60 percent, ultimately achieving self-sufficiency and catering to the West Africa regional market.”
He elaborated, “As you are aware, Dangote holds majority shares in Peugeot Automobile Nigeria in Kaduna, where we assemble compact vehicles. DSWAL, our joint venture with a $100 million investment, focuses on the truck assembly, with Dangote Industries owning 60 per cent, Sinotruck China 30 per cent, and Andas 5 per cent.
“We are poised to engage in the forthcoming production of Compressed Natural Gas (CNG) vehicles championed by the government. Dangote commits to procuring 10,000 CNG trucks, with 1,500 expected by June/July, including 500 already at the port. Our facility can assemble and manufacture 10,000 trucks annually, generating approximately 3,000 jobs nationwide.”
The Senate President commended the Dangote Group’s significant investments in Lagos, across Nigeria, and beyond international borders.
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