![[DEAL] BUA Group Aims For 20% Cement Market Share With This Deal With China’s Sinoma](https://nairametrics.com/wp-content/uploads/2015/09/PIC-1-BUA-AND-SINOMA-CBMI.jpg)
The BUA Group has announced the signing of a $600m contract with China’s leading Cement manufacturing supplier, SINOMA CBMI to commence the construction of a second production line of its Obu Cement Plant. According to BUA, the deal which was signed at the SINOMA CBMI offices in China will further bolster the Group’s share of the cement market in Nigeria to over 20% market share by the time the expansion is completed.
Just last week, Sinoma also signed $4.34 billion worth of contracts with Dangote Cement to almost double its production capacity across Africa, including Nigeria.
Speaking at the signing ceremony which held at the SINOMA CBMI Headquarters in China, Abdulsamad Rabiu, Executive Chairman of BUA Group said that the new line was part of the Group’s organic growth strategy for its cement arm, BUA Cement.
“Given their proven track record and vast expertise in deploying cement plants across the world, we are confident in SINOMA’s ability to deliver a world-class second line for our Obu Cement Plant as well as meet our stringent environmental, safety, quality and technical requirements for our plants and products. This additional capacity forms part of our strategic growth programme for our Cement arm, BUA Cement. In the long term, we expect to commit significant investments in cement production across the continent whilst also ensuring that the quality of our products remain a key differentiating factor in the marketplace.”
Tong Laigou, Board Chairman of SINOMA CBMI said,
“We are happy to sign this contract and extend our ongoing partnership with BUA Cement. This signing follows an earlier project to install an additional 1.5mtpa capacity to Sokoto Cement – also subsidiary of BUA Cement, which is expected to be completed soon and commissioned in 2016. We intend to bring our wealth of experience and expertise to bear in bringing this project to fruition.”
SINOMA CBMI has successfully completed hundreds of key projects for cement production lines in China and across the world, including almost all foreign-funded projects in China, with total number of cement production lines exceeding 150. Amongst its numerous achievements, CBMI was responsible for constructing the world’s largest cement plant consisting of two 10,000 t/d cement production lines.
BUA Group is one of Nigeria’s largest Foods and Infrastructure conglomerates with significant investments in various sectors of the economy including Cement, Sugar, Steel, Flour & Pasta, Edible Oils, Housing, and Port Operations. It’s cement arm, BUA Cement, currently operates factories in Obu and Okpella, Edo State Nigeria and also in Sokoto through its majority shareholding in CCNN.
