BUA, CBMI sign deal to increase production capacity to 11 million tonnes annually

Less than one week after the listing of shares from the almost $1 billion Merger between BUA Kalambaina Cement Company and Cement Company of Northern Nigeria where it also assumed majority stakes in the enlarged company, BUA Group has announced signing of another contract with world’s renowned cement manufacturing company, CBMI, for the construction of a new 3million metric tonnes per annum Kalambaina Cement Line 2 in Sokoto.

This comes barely 90 days after the completion of another 3million MTPA BUA Obu Cement line 2 in Okpella, Edo State, Southern Nigeria and 7 months after the commissioning of its 1.5million MTPA Kalambaina Cement Plant line 1 in Sokoto state thus bringing BUA Cement’s total installed capacity to 11 million MTPA by the time the new project Is completed.

Speaking at the contract signing ceremony for the plant in Sokoto, AbdulSamad Rabiu, Executive Chairman/CEO, BUA Group and Chairman of CCNN, disclosed that the construction of the new 3million mtpa kalambaina line was in line with BUA Cement’s strategic midterm expansion programme.

According to Abdul Samad, the Nigerian market is still greatly underserved and with the projected growth in major infrastructure projects and spending over the next few years, it is important that local manufacturers are able to scale effectively to meet current and projected demand.

Mr Rabiu added that this partnership between BUA and Sinoma CBMI is not the first as they were responsible for constructing the first BUA Kalambaina plant in Sokoto State.

“We are very confident that Sinoma CBMI possesses the necessary technical expertise given their track records in deploying cement plants across the world. ” Mr. Tong Laigou, Chairman of CBMI, signed on behalf of CBMI construction.

On BUA becoming Nigeria’s second largest cement producer by volume, Mr Rabiu said that BUA’s strategic cement expansion programme which focused on key regional and export markets has seen it become the second largest producer of cement by volume in Nigeria this year whilst solidifying BUA Cement’s leadership positions in the North West, South South and South East Markets of Nigeria. “We will continue to deliver quality products which has earned us the ‘King of Strength and King of Cement’ moniker amongst block makers who form the largest users of cement in Nigeria”.

It would be recalled that the Security and Exchange Commission had recently approved the merger of the Cement Company of Northern Nigeria Plc with BUA’s KalambainaCement Company Limited of Nigeria that saw the enlarged CCNN become Nigeria’s 12th largest company by market capitalisation.

BUA Group’s current cement assets include the 6million MTPA Obu Cement I & II plants in Okpella, Edo State, the 500,000mtpa Edo Cement Plant, the 1.5million MTPA Kalambaina Cement Plant and the 500,000 Sokoto Cement Plant. The Group also owns over 90% stake in the publicly listed Cement Company of Northern Nigeria Plc and is widely acclaimed for its high capacity utilisation, efficiency and quality of its products.