…signs agreement with Chinese firm
BUA Cement Plc. has signed an agreement with Sinoma CBMI of China for the construction of three new plants in Edo, Sokoto and Adamawa states. Each of the new plants has 3 million tonnes per annum capacity and expected to be completed by the end of 2022. According to the management of BUA, upon completion, it is expected that the nine million tonnes cement plants in the three states will bring BUA Cement’s total capacity to 20 million metric tonnes by 2022.
The company noted the total project cost is put at $1.05 billion. These three new plants are in addition to the existing 6 mmtpa plant in Edo State, 2 mmtpa plant in Sokoto State and another 3 mmtpa plant in Sokoto – which will be commissioned in Q2 2021. Speaking at the ceremony held simultaneously at BUA headquarters in Lagos and the CBMI HQ in China, the Chairman of BUA Cement, Abdul Samad Rabiu, said the expansion was to transform the manufacturing industry and increase Nigeria’s cement production capacity. Rabiu said: “Nigeria and the surrounding region is still home to huge opportunities in construction, housing, infrastructure, and allied industries.
“Despite these op-portunities, there is no doubt that there is still a huge deficit in supply whilst demand continues to increase in Nigeria. This situation 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 $1.05 billion, which will be completed by the end of 2022.” Chairman of SINOMA CBMI, Tong Laigou, praised the longstanding partnership between BUA and CBMI.
He said: “SINOMA CBMI was pleased to work with BUA on this huge project and help BUA in its aspiration to be the best cement manufacturer in Africa.” He added that CBMI would bring their 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.