The Management of BUA Cement Plc has disclosed that the Company is set to sign a contract for the building of additional three production lines, with an installed capacity of 3 million metric tonnes per annum each this week.
This disclosure was made by the Company in a notification issued and signed by the Company’s Secretary, Mr. Ahmed Aliyu.
In line with the information contained in the disclosure, the contract will be signed between the Company and Sinoma CBMI of China.
According to the statement issued by Mr. Aliyu, the three plants with an installed capacity of 3 million metric tonnes per annum each, will be located at Adamawa, Edo and Sokoto States.
This, however, when completed, is expected to increase the total installed production capacity of the cement manufacturer by a cumulative 9 million metric tonnes per annum.
What you should know
- In a publication by Nairametrics six months ago, the Chairman of BUA, Abdul Samad Rabiu, disclosed that the company was set to establish a three million metric tonnes cement plant and 50 megawatts power plant in Guyuk and Lamurde local governments of Adamawa state, in the North Eastern region of Nigeria.
The Chairman stressed that the Guyuk Cement Plant as proposed, would be a major investment in the North-East by BUA and the company would ensure that raw materials are sourced locally.
Why this matters
The additional three production plants with an installed capacity of 3 million metric tonnes each are expected to add to the robust infrastructure of the cement manufacturer.
- These plants when completed in 2022, in addition with its 3rd cement line of 3millon mtpa in Sokoto which has been booked for commissioning in mid-2021, are expected to increase the total installed cement production capacity of the company from 8 million mtpa to 20 million mtpa.
- This will enable the manufacturer to secure its place in the Nigerian Markets and unlock Pan-African opportunities elsewhere in the continent.
- This move is expected to place the company higher than Lafarge as the second-largest cement manufacturer in Nigeria, with a total installed capacity of 10.5 million mtpa, but lower than Dangote’s total national installed capacity of 29.25 million mtpa.
What they are saying
The founder of BUA Group Plc, Abdul Samad Rabiu, in his statement at the 2020 Institute of Directors Dinner, said:
- “I am happy to announce that our 3rd cement line of 3mmt per annum in Sokoto is expected to be commissioned in the middle of 2021, and I am also pleased to inform you that we are commencing the construction of 3 more cement plants of 3 million tonnes each in Sokoto, Edo and Adamawa at the cost of $1.050billion, which should be completed by the end of 2022. The contract signing is expected to happen this week.”
Speaking about impressive developments in the foods segment of the Group, Rabiu said:
- “BUA is also looking to combine our foods businesses – from sugar, flour, pasta to list as BUA FOODS on the NSE by the end of 2021. In sugar, we have our integrated plantation in Kwara State set to produce 200,000 tonnes of refined sugar, 20million litres of ethanol annually and 35MW of power – all utilizing the by-products of cane sugar.”
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