In its bid to deepen the Nigerian capital market and enhance the
growth of the cement industry, BUA Group, one of Africa’s largest
conglomerates, today, announced the consolidation of its cement business
comprising the publicly listed 2million Mtpa Cement Company of Northern Nigeria
Plc (CCNN) and 6million mtpa Obu Cement Company Plc.
This
disclosure was
made in a filing to regulators. BUA also announced that its
newest 3million metric tonnes cement plant which it started constructing in
2018 – the $450million dollars Sokoto Kalambaina II plant, is scheduled for
completion in H2, 2020.
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.
Commenting,
Abdul Samad Rabiu, Founder & Executive Chairman of BUA Group, said that
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 spread across Obu Cement Company and the Cement Company of Northern
Nigeria.
A
new $450million 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, Rabiu added.
“This consolidation will cement BUA’s position as the second largest cement producer in Nigeria whilst also positioning it to take advantage of the combined synergies to effectively serve Northern and Southern Nigeria based on the strategic locations of these 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 laserlike commitment to excellent products and service delivery, operational efficiency as well as maintaining our leadership positon 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 neighboring countries.
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