BUA Group, one of Africa’s largest conglomerates, has announced plan to merge its 2million metric tons Cement Company of Northern Nigeria Plc (CCNN) with 6million metric tons Obu Cement Company Plc in a bid to consolidate its cement business.
The plan was aimed at enhancing the growth of cement industry in the country.
In a statement signed by the Group Head Corporate Communications, O’tega OGRA , BUA also announced that its newest 3million metric tons cement, SokotoKalambaina II plant, is scheduled for completion in the second half of next year, 2020.
The construction of the plant started in 2018 at the cost of $450million dollars.
It added that “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.”
The statement cited Abdul Samad Rabiu, Founder & Executive Chairman of BUA Group, as saying 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 SokotoKalambaina 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.
He said the consolidation would 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 its plants.
“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 added.
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