BUA Group, a company which has largely developed over 20 years, having its stake in a wide range of diversified business sectors, has announced the consolidation of its cement business comprising the publicly listed 2million Mtpa Cement Company of Northern Nigeria Plc (CCNN) and 6million mtpa Obu Cement Company Plc.
This announcement was made in a public statement released to the Herald on the 30th of October 2019, a move made in anticipation of enhancing the growth of the cement industry and boosting the Nigerian economy.
BUA also announced that its newest 3million metric tonnes cement plant which it started constructing in 2018 – the $450million dollars Sokoto Kalambaina II plant, is scheduled for completion in H2, 2020.
The statement further read;
“With the consolidation and addition of the Sokoto Kalambaina II plant, this will bring BUA Cement’s total installed capacity across all its cement holdings to 11 million MTPA.
“Commenting, Abdul Samad Rabiu, Founder & Executive Chairman of BUA Group, said that 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.
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Quoting Rabiu, it said;
“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.
It has been predicted by experts by Analysts that the consolidation will put BUA Cement in limelight, which will in turn serve as a stronger position to compete even better and explore export opportunities in neighbouring countries.
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