- BUA Sets Completion Date for New $450m Kalambaina II Plant
In an effort to broaden its reach in the Nigerian capital market and deepen growth of the cement industry, BUA Group, one of Africa’s leading cement manufacturers, on Wednesday announced the consolidation of its cement business, comprising the publicly listed 2million mtpa Cement Company of Northern Nigeria Plc (CCNN) and another 6 million mtpa Obu Cement Company Plc.
This was disclosed in a statement to the Nigerian Stock Exchange (NSE).
The cement manufacturer also announced that its new 3 million metric tonnes cement plant valued at about $450 million will be completed in the second half of 2020. This with the Sokoto Kalambaina II plant will bring the company’s cement’s capacity across all holdings to 11 million mtpa.
Speaking on the progress so far, Abdul Samad Rabiu, Founder & Executive Chairman of BUA Group, said “this consolidation marks the culmination of the first phase of the BUA mid-term strategic plan for its cement businesses, which currently include four cement plants spread across Obu Cement Company and the Cement Company of Northern Nigeria.
“A new $450million Sokoto Kalambaina II Plant is scheduled to come on stream in the second half of 2020 alongside another 48MW power plant to complement the existing assets and take advantage of a growing cement market in Northern Nigeria and the West African region.
“This consolidation will cement BUA’s position as the second-largest cement producer in Nigeria whilst also positioning it to take advantage of the combined synergies to effectively serve Northern and Southern Nigeria based on the strategic locations of these plants – as well as a sizeable export market.
“We intend to continue creating value for the benefit of shareholders of the consolidated company by maintaining our focus on outperforming the Nigerian cement industry across key indices through a laser like commitment to excellent products and service delivery, operational efficiency as well as maintaining our leadership position in our home markets,” Rabiu said.
Experts said this will better position BUA Cement to explore opportunities in neighbouring countries.
