BUA Group has disclosed that its newest 3million metric tonnes cement plant, the $450million Sokoto Kalambaina II plant, will be commissioned in the Second Quatre of 2020.
In a statement on Wednesday by BUA’s spokesperson, Sunday Ogieva, also announced the consolidation of the group’s cement business entities comprising the publicly listed 2million Mtpa Cement Company of Northern Nigeria Plc, CCNN, and 6million mtpa Obu Cement Company Plc.
According to the statement, the consolidation and addition of the Sokoto Kalambaina II plant, will bring BUA Cement’s total installed capacity across all its cement holdings to 11 million MTPA.
Commenting on the development, 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.
According to him, 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.
“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 laser-like commitment to excellent products and service delivery, operational efficiency as well as maintaining our leadership positon in our home markets,” Mr Rabiu said.
DAILY NIGERIAN reports that analysts predict that this will put BUA Cement in a stronger position to compete even better and explore export opportunities in neighboring countries.