Dangote, Sinoma win $228 mln cement contracts

LAGOS, Oct 15 (Reuters) - Nigeria's largest cement producer Dangote Cement said on Thursday it had signed construction contracts worth $228 million with China's Sinoma International Group (600970.SS: Quote, Profile, Research) to build cement plants in Senegal and Zambia.

The contracts for two 3,000-tonne per day cement plants mark the revival of the Nigerian firm's expansion plans outside Africa's most populous country following the global economic slowdown.

"We have concluded this deal with Sinoma in order to drive forward our pan-Africa expansion strategy at a time when the global economy seems to be emerging from recession," Aliko Dangote, President and CEO of the Dangote Group said in a statement.

"We are in a strong financial position and we are putting our money where our mouth is", he added.

Dangote Cement has projects and operations in Nigeria, Benin, Ghana, Senegal, Zambia and South Africa, with a capacity of 13 million tonnes.

The group's total commitment to new production capacity in Africa is $1.63 billion.

Partnerships between African and Chinese companies have become more and more common as Beijing looks to secure natural resources for the Asian giant's growing economy.

Nigerian government officials announced last month that Chinese firms wanted to buy 6 billion barrels of its crude oil reserves. [ID:nL7680308] (For more Reuters Africa coverage and to have your say on the top issues, visit: af.reuters.com/ ) (Reporting by Chijioke Ohuocha; Editing by Randy Fabi and Jon Loades-Carter)

From Reuters (2009-10-15)