NIGERIA – BUA Cement, a part of BUA Group, has signed an agreement with Sinoma CBMI of China for the construction of three new cement plants of 3million tonnes each per annum in Edo, Sokoto and Adamawa states of Nigeria to be completed by the end of 2022.
Upon completion, this will bring BUA Cement’s total capacity to 20million metric tonnes by 2022. 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.
These 3 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 Q2 2021.
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.
“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 US$1.05 billion which will be completed by the end of 2022.”
Abdul Samad Rabiu – Chairman, BUA Cement
“Despite these opportunities, 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,” he said.
“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 US$1.05 billion which will be completed by the end of 2022.”
BUA Cement is Nigeria’s second largest cement company and the largest producer in its North-West, South-South and South-East regions.
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