Tuesday, Jan 26th 2021 12:13 PM
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Market Digest Nigeria

Business

BUA sign Pact with Chinese Firm to construct U.S.$1.05b Cement Plants

BUA Cement Plc has signed an agreement with Sinoma CBMI of China for the construction of three new cement plants of three million tonnes each per annum in Edo, Sokoto and Adamawa States.

The nine-million tonnes combined capacity expansion project, estimated to cost about $1.05billion, is slated to be completed by the end of 2022.

Upon completion, this will bring BUA Cement’s total capacity to 20 million metric tonnes.

The project is the single largest contract ever awarded in the Nigerian cement industry for the construction of new cement plants at the same time and by a single company.

These three new plants are in addition to BUA Cement’s already existing six mmtpa plants in Edo State, three mmtpa plants in Sokoto State and another three mmtpa BUA Cement plant in Adamawa – which will be inaugurated in second quarter of 2021.

Speaking at the ceremony held simultaneously at BUA headquarters in Lagos and the CBMI headquarters in China, the Chairman of BUA Group, Abdul Samad Rabiu, said the expansion decision was to transform the manufacturing industry and increase Nigeria’s cement production capacity.

“Nigeria and the surrounding region is still home to huge opportunities in construction, housing, infrastructure, and allied industries.

“Despite these opportunities, there is no doubt that there is still a huge deficit in supply whilst demand continues to increase in Nigeria.

“This situation has led to an increase in the retail prices of cement despite ex-factory prices remaining partially unchanged.

“To bridge this huge deficit gap in Nigeria and in the absence of new major investments in the industry, we have taken this decision to invest and build these new plants at a total project cost of 1.05 billion dollars which will be completed by the end of 2022,” he stated.

In his comments, the Chairman of SINOMA CBMI, Mr. Tong Laigou, praised the longstanding partnership between BUA and CBMI.

He said SINOMA CBMI was pleased to work with BUA on the project and help BUA in its aspiration to be the best cement manufacturer in Africa.

He added that CBMI would bring its expertise and wealth of experience working in this environment to bring the project to completion on schedule.

BUA Cement Plc is Nigeria’s second largest cement company and the largest producer in its North-west, South-south and South-east geopolitical zones.

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