By Babajide Okeowo
In a bid to transform the manufacturing industry and increase Nigeria’s cement production capacity, BUA Cement has signed an agreement with Sinoma CBMI of China for the construction of three new cement plants of three million tonnes each per annum.
The project is expected to be located in Edo, Sokoto, and Adamawa states and is billed for completion by the end of the year 2022 at the value of $1.05bn.
According to the company, the three new plants are in addition to BUA Cement’s already existing 6 Million Metric Tonne Per Annum, MMTPA plants in Edo State, 2 MMTPA plants in Sokoto State, and another 3 MMTPA BUA Cement plant in Sokoto, which will be commissioned in the second quarter of 2021.
Upon completion of the projects, BUA cement’s capacity would increase to 20 million metric tonnes by 2022.
Speaking at the ceremony held simultaneously at BUA headquarters in Lagos and the CBMI headquarters in China, Chairman of BUA Cement, Abdul Rabiu, said the expansion decision aimed to transform the manufacturing industry and increase Nigeria’s cement production capacity.
“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.
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 $1.05bn, which will be completed by the end of 2022” Rabiu noted.
On his part, the Chairman of SINOMA CBMI, Mr. Tong Laigou, praised the longstanding partnership between BUA and CBMI.