L-R: Engr. Yusuf Binji, Managing Director/CEO, BUA Cement Plc; Abdul Samad Rabiu, Founder, BUA Group/Chairman, BUA Cement and Jacques Piekarski, Chief Financial Officer, BUA Cement Plc during the signing ceremony between BUA and SINOMA CBMI of China for the construction of 3 new cement plants of 9million mtpa for BUA in Sokoto, Edo and Adamawa today at a total project cost (incl. construction) of 1.05billion US dollars.
Africa’s leading cement giant, BUA Cement, has signed an agreement with Sinoma CBMI of China for the construction of three cement plants of three million tonnes each per annum in Edo, Sokoto and Adamawa states, at the cost of 1.05 billion US dollars.
A statement signed by Sunday Ogieva, of BUA Corporate Communications, and made available to SummitNews, said the projects will be completed by the end of 2022.
This will bring BUA Cement’s total capacity to 20 million metric tonnes by 2022.
According to the statement, at 9million tonnes combined capacity, this is the single largest contract ever awarded in the Nigerian Cement Industry for the construction of new cement plants at the same time and by a single company in Nigeria.
The three new plants are in addition to BUA Cement’s already existing 6mmtpa plants in Edo State, 2mmtpa plants in Sokoto State and another 3mmtpa BUA Cement plant in Sokoto – which will be commissioned in the second quarter of 2021.
Speaking at the ceremony held simultaneously at BUA HQ in Lagos and the CBMI HQ in China, Abdul Samad Rabiu, Chairman of BUA Cement said the expansion decision was to transform the manufacturing industry and increase Nigeria’s cement production capacity noting that “Nigeria and the surrounding region is still home to huge opportunities in construction, housing, infrastructure, and allied industries”.
“Despite these opportunities, there is no doubt that there is still a huge deficit in supply whilst demand continues to increase in Nigeria,” he said.
This situation he further said has led to an increase in the retail prices of cement despite ex-factory prices remaining partially unchanged.
“To bridge this huge deficit gap in Nigeria and in the absence of new major investments in the industry, we have taken this decision to invest and build these new plants at a total project cost of 1.05billion dollars which will be completed by the end of 2022,” said the BUA chairman.
In his comments, Mr. Tong Laigou, chairman of SINOMA CBMI praised the long standing partnership between BUA and CBMI.
“SINOMA CBMI is pleased to work with BUA on this huge project and help BUA in its aspiration to be the best cement manufacturer in Africa,” he stated,
He further added that CBMI would bring its expertise and wealth of experience working in this environment to bring the project to completion on schedule.
BUA Cement Plc is Nigeria’s second largest cement company, and the largest producer in its North-West, South-South and South-East regions of Nigeria.