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08 January 2019

BUA and CBMI sign agreement for new Nigerian cement plant

First publishedon www.AggBusiness.com
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Pictured at the signing ceremony for the new cement plant in Sokoto State: Abdul Samad Rabiu (right), chairman of BUA Group and CCNN and Tong Laigou, president CBMI

Industrial group BUA has signed a contract with Chinese cement manufacturing company CBMI for the construction of a new plant in Nigeria.

The Kalambaina Cement Line 2 plant will be located in Sokoto State in the north West of the country and is planned to manufacture 3million metric tonnes of cement per annum.

The announcement comes a few weeks after Nigerian authorities approved the merger between Kalambaina Cement and the Cement Company of Northern Nigeria (CCNN). BUA owns a 90% stake in CCNN.

In October BUA completed another cement plant project - the Obu Cement line 2 in Okpella, Edo State, Southern Nigeria. In June BUA also commissioned its 1.5million tonnes per annum Kalambaina Cement Plant line 1 in Sokoto state. When the new Kalambaina Cement Line 2 plant is completed it will bring BUA Cement’s total installed capacity to 11million tonnes per annum.

Abdul Samad Rabiu, executive chairman/CEO, BUA Group and chairman of CCNN, said that the Nigerian cement market is still greatly underserved. He added that, with the projected growth in major infrastructure projects and spending over the next few years, it is important that local manufacturers are able to scale effectively to meet current and projected demand.

Rabiu said that BUA’s strategic cement expansion programme, which focused on key regional and export markets, has seen it become the second largest producer of cement by volume in Nigeria this year.

BUA Group’s current cement assets include the Obu Cement I & II plants in Okpella, Edo State, the Edo Cement Plant, the Kalambaina Cement Plant and the Sokoto Cement Plant.

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