Nigerian Senate commends Dangote-Sinotruk on investment in vehicle assembling

*Senator Tokunbo Abiru, Chairman of the Senate Committee on Industry, says the Federal Government encourages Dangote Sinotruk West Africa Limited to continue to make Nigeria self-reliant in vehicle assembly

Isola Moses | ConsumerConnect

Senator Tokunbo Abiru, Chairman of the Senate Committee on Industry, in the National Assembly (NASS), Abuja, FCT, has commended Dangote Sinotruk West Africa for the company’s impressive commitment to Nigeria’s economic development through investment in a vehicle assembly plant in the country.

ConsumerConnect reports the Dangote Group in a statement issued Thursday, September 15, 2022, noted Abiru said with Dangote Sinotruk West Africa Limited, Nigeria’s path to self-reliance in vehicle assembling had begun.

The Federal legislator stated: “We want to encourage the company to continue to see how best to make Nigeria self-reliant in vehicle assembling as well as encourage other players in the value chain to also get on board.”

A fleet of locally-assembled Dangote trucks

According to him, as much as members of the West African country’s Senate Committee on Industry would prefer a factory setting where almost everything are manufactured here in Nigeria, “we believe what Dangote Sinotruk have in place is a very good starting point towards achieving backward integration in vehicle assembling in Nigeria.”

Abiru also said: “What the company is doing is one of the ways you can advance the economy of this country.

“The company has a production line that assembles trucks that are needed for economic activities in Nigeria.”

He further noted: “For us in the Senate, this is a very good starting point.

“Our desire is for Completely Knocked Down parts (CKDs) to be manufactured here in Nigeria.

“The Dangote Sinotruk plant will assist the government to preserve foreign exchange that would have been used to imports trucks into the country.”

The lawmaker further said: “The company is also providing employment to many Nigerians.

“What we need on the part of government is to continue to support the company to grow.”

In his remarks, Hikmat Thapa, Group General Manager, Dangote Sinotruk West Africa Limited, lauded the Senate Committee members for  touring the vehicle assembly plant.

On government’s backward integration programme

Thapa said that the company seeks to meet the growing demand for the automobile industry required for logistics, construction, food & beverage industries in Nigeria to support the government’s efforts at boosting economic development across the country.

In his presentation to the Senate Committee members, Engr. M.J Kogis,

Assistant Manager, Sinotruk West Africa, said to support the Federal Government’s backward integration drive for Nigerian products, the company is planning a project expansion to enhance value addition and increase local inputs to 40–60 percent within West Africa.

Sinotruck’s installed capacity

Engr. Kogis disclosed that Sinotruk has installed capacity to assemble and produce 15–16 Trucks per shift, equivalent to 10,000 trucks annually.

The Assistant Manager of the company said the automotive project aims to generate about 3,000 job opportunities across Nigeria.

Kogis also stated the company has expanded its original structure to create welding and paint lines to fabricate various truck cabins.

He said: “Aside from creating an ‘All-in-one’ complete assembly system, this expansion project enhances the local content of CKD operation. Dangote Sinotruk West Africa Limited is the only company with CKD capabilities in West Africa.

Quality products guaranteed, says Kogis

“The quality products of Sinotruk are of high standard, which are reliable and adaptable to any environment, enabling them to stably serve our customers in various climatic environments, working sites, and operational conditions of different countries.”

Kogis as well identified lack of Foreign Exchange and unhealthy competition with automobile companies evading government policies and regulations without proper certification for CKD assembly as some of the challenges confronting the company.

The official noted: “Certified automobile companies tend to run at a loss when placed on the same platform of expenditure.”

Kogis, therefore, urged the Federal Government to review and implement favourable policies towards the development of automobile companies in the West African country.

The Assistant Manager as well urged the government to provide grants and financial aid through the Bank of Industry (BOI) and direct forex allocation from the Central Bank of Nigeria (CBN) for the opening of Letters of Credit (LCs).

Strategic importance of Sinotruk to economy

With regard to the importance of Dangote Sinotruk to Nigeria’s economic development, Kogis said: “Dangote Sinotruk West Africa Limited as a Joint Venture aims to play a strategic and key role in the manufacturing and assembly industry to develop trucks to serve the various logistics needs of the populace.

“With this goal in mind, we are structured to provide employment opportunities to the masses in line with Dangote Group objectives as well as improve local automobile industry and promote the economic development in Nigeria.”

The company, he further stated, has the responsibility to assemble and produce a full range of commercial vehicles covering Heavy-Duty trucks, Medium-Duty trucks, Light Trucks, and other semi-trailers, etc.

According to him, the company also provides employment opportunities to Nigerians, improves the local automobile industry, adds equipment base and achieves technological advancement in Nigeria to promote the economic development in Nigeria.

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