BUA Group sets to consolidate its cement businesses
BUA Group, one of Africa’s largest conglomerates and second-largest cement producer in Nigeria, today, announced the consolidation of its cement production businesses comprising the publicly-listed Cement Company of Northern Nigeria Plc (CCNN) and Obu Cement Company Plc. CCNN produces two million metric tonnes per annum (mtpa) while Obu Cement Company produces six mtpa.
This disclosure was made in a filing to regulators.
BUA also announced that its $450 million Sokoto Kalambaina II is scheduled for completion in the second half of 2020. Construction started at the plant in 2018. The BUA’s newest plant has three mtpa production capacity.
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.
“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,” said Abdul Samad Rabiu, Founder & Executive Chairman of BUA Group. “A new $450 million 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.”
He said this consolidation will cement BUA’s position as the second-largest cement producer in Nigeria, while also positioning it to take advantage of the combined synergies to effectively serve Northern and Southern Nigeria, based on the strategic locations of the 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.
Analysts predict that this will put BUA Cement in a stronger position to compete even better and explore export opportunities in neighbouring countries.
Photo: Abdul Samad Rabiu, Founder & Executive Chairman of BUA Group.
Published on Financial Nigeria