Nigeria’s foremost conglomerate, BUA Group said on Sunday it has signed a deal worth $600 million with China’s leading cement manufacturing supplier, SINOMA CBMI to commence the construction of a second production line.
BUA says the contract will enable it further double the capacity of its new Obu Cement Plant. “This landmark agreement which was signed at the SINOMA CBMI offices in China will further bolster BUA Group’s share of the cement market in Nigeria to over 20% market share by the time the expansion is completed,” the company said in statement.
Abdulsamad Rabiu, executive chairman of BUA Group at the signing in ceremony in China said that the new line was part of the Group’s organic growth strategy for its cement arm, BUA Cement. “Given their proven track record and vast expertise in deploying cement plants across the world, we are confident in SINOMA’s ability to deliver a world-class second line for our Obu Cement Plant as well as meet our stringent environmental, safety, quality and technical requirements for our plants and products,’ he affirmed.
According to Rabiu, the additional capacity forms part of the Group’s strategic growth programme for its Cement unit. “In the long term, we expect to commit significant investments in cement production across the continent whilst also ensuring that the quality of our products remain a key differentiating factor in the marketplace,” he added.
On his part, Tong Laigou, board Chairman of SINOMA CBMI said, “We are happy to sign this contract and extend our ongoing partnership with BUA Cement. This signing follows an earlier project to install an additional 1.5mtpa capacity to Sokoto Cement– also subsidiary of BUA Cement, which is expected to be completed soon and commissioned in 2016. We intend to bring our wealth of experience and expertise to bear in bringing this project to fruition.”