Dangote rolls out Vehicle assemble business with joint partnership with Sinotruck

Dangote group is led by Nigerian billionaire Aliko Dangote, the group has lots of portfolios from Sugar, to Cement, and fertilizer and now they are venturing into the vehicle assembly business.

Nigeria does not own a single vehicle manufacturing plant but there is one major vehicle assembly plant called Innoson cars, the firm assemble car parts that are shipped to Nigeria and then sell it to the public.  Dangote is starting its own vehicle assembly to help tackle the accessibility of cars and trucks in Nigeria. 

What we know about Dangote Car Ventures

Dangote Automotive Joint Ventures

Dangote Industries Limited is in a joint venture with Sinotruck and set up a $100 million plant to assemble trucks and cars in Nigeria for local use and export.

The joint venture, which is 65 percent owned by Dangote and 35 percent by Sinotruck will assemble components and knocked down parts imported from Sinotruck to the Nigerian plant. It aims to meet the expected increased demand for transport in the country as the government focuses on boosting agriculture and farmers need to move goods across the vast country.

The Group also has business with Transit Support Services (TSS) Limited, the assemblers of Shacman truck in Nigeria.

The trucks will be used for diverse onshore and offshore operations in the country. Dangote Industries Limited is 90 percent the principal fleet customer for the Shacman range of trucks. The trucks are assembled inside the Anambra Motor Manufacturing Company (ANAMMCO) automotive assembly plant in Emene, Enugu. The total value of the investment is worth over N60 Billion.

Sinotruck is a Chinese company that makes heavy-duty trucks.  Innoson will focus on cars while Dangote will focus on making trucks to sell to the Nigerian public.

Dangote will invest about  N60 billion in its automotive business and this will be a 65 percent to 35 percent share with Sinotruck. Dangote will be the majority owner and the direct seller in Nigeria. Dangote automotive trucks will be assembled in Emene, Enugu.  Dangote is a publicly traded company, but this new venture will remain private for now.