BUA Partners CBMI to increase its’ total installed capacity to 11million MTPA in Sokoto

Less than one week after the listing of shares from the almost $1 billion Merger between BUA Kalambaina Cement Company and Cement Company of Northern Nigeria where it also assumed majority stakes in the enlarged company, BUA Group has announced signing of another contract with world’s renowned cement manufacturing company, CBMI, for the construction of a new 3million metric tonnes per annum Kalambaina Cement Line 2 in Sokoto.

This comes barely 90 days after the completion of another 3million MTPA BUA Obu Cement line 2 in Okpella, Edo State, Southern Nigeria and 7 months after the commissioning of its 1.5million MTPA Kalambaina Cement Plant line 1 in Sokoto state thus bringing BUA Cement’s total installed capacity to 11 million MTPA by the time the new project Is completed.


Speaking at the contract signing ceremony in Sokoto State, Executive Chairman/CEO, BUA Group and Chairman of CCNN, Abdul Samad Rabiu, disclosed that the construction of the new three million MTPA Kalambaina line was in line with BUA Cement’s strategic mid-term expansion programme.

According to eyes witness at signing ceremony, quoting Rabiu saying, the Nigerian market is still greatly under served, and 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 also added that the partnership between BUA and Sinoma CBMI was not the first as they were responsible for constructing the first BUA Kalambaina plant in Sokoto State.

BUA, CCNN plan merger; targets two million tonnes capacity in Northwest region

Cement Company of Northern Nigeria founded in 1962 and BUA Cement Company have expressed optimism of achieving a combined cement capacity of two million metric tonnes in the North-West region of the country under the proposed merger of the firms.

From reliable source, the Board of Directors of CCNN and owners of Sokoto Cement Plant had disclosed that it has informed the Nigerian Stock Exchange of its proposed merger (“Proposed Merger”) with the BUA Cement-owned Kalambaina Cement Company Ltd (“Kalambaina Cement”), owners and operators of the newly built 1.5million tonnes per annum Kalambaina Cement plant in Sokoto State.

The disclosure was made known in filings to regulatory authorities and is subject to various approvals.

If approved, the combined entity will have a total installed capacity of 2million metric tonnes per annum.

In its disclosure on the Proposed Merger, Managing Director, CCNN, Ibrahim Aminu said that the proposed merger will position CCNN for better competitiveness within its home market and also enable it utilize the more modern plant and equipment of the Kalambaina Cement Company Ltd. to boost its market penetration and export potential.

“Over the years, we have always delivered exceptional value to all stakeholders and this Proposed Merger is in continuation of that.

We have consistently outperformed the industry in key metrics such as capacity utilization but growth has been hampered over the years due to limited expansion and lack of alternative fuel sources.

“Kalambaina Cement’s 1.5million metric tonnes per annum multi-fuel (coal, heavy oils and gas) powered cement plant solves that issue with limited downtime and further opportunities for growth and expansion”, he added.

The statement revealed, CCNN further alluded that the Proposed Merger provides a compelling opportunity to capture significant synergies and create value for the benefit of the shareholders of both companies in the form of stronger competitive position of the enlarged company, economies of scale, enhanced operations and administrative efficiencies which are expected to accrue.

This is in view of various challenges that had prevented CCNN from maximizing the opportunities present in its local markets where it is hampered by limited access and high cost of heavy fuels which CCNN’s Sokoto Cement factory operates on.


BUA Group committed to Sugar Estates in Kwara, Kogi

…Signs pact with G till 2023
In a bid to boost the Nigerian Sugar Industry, BUA Group has signed a pact with the Federal Government till 2023 and has committed to developing two sugar estates in Kwara and Kogi states as part of its contribution to strengthening the local sugar industry.
Pix:  Kabiru Rabiu (r), Group Executive Director, BUA Group in a handshake with Okechukwu Enelamah (l) Hon. Minister for Industry, Trade & Investment at the signing of Phase II of the BIP for the Nigerian Sugar Industry Masterplan whilst Latif Busari (c), Executive Secretary of the National Sugar Development Council looks on.
Already, BUA’s 300million dollars investment in its subsidiary, Lafiagi Sugar Company (LASUCO), is one of the largest private led investments in that region of the country. When it fully comes on stream, BUA Group’s $300million investment in the 20,000 hectares Lafiagi Sugar Estate which covers a sugar plantation, sugar mill, refinery and ethanol plant and is expected to produce about 1.5 million metric tonnes of raw sugar annually, 25million litres of ethanol, generate 35megawatt of electricity and create employment opportunities for over
15,000 people directly and indirectly.
BUA renews pact with FG on increased local sugar production

Chairman of BUA Group, Abdulsamad Rabiu

By Benjamin ameh

With the successful start of production at its new Obu Cement Plant, BUA Group is set to further double the capacity of the plant as it has signed a USD600million contract with China’s leading Cement manufacturing supplier, SINOMA CBMI to commence the construction of a second production line. This landmark agreement which was signed at the SINOMA CBMI offices in China recently 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.


Speaking at the signing ceremony which held at the SINOMA CBMI Headquarters in China, Abdulsamad Rabiu, Executive Chairman of BUA Group, 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.



This additional capacity forms part of our strategic growth programme for our Cement arm, BUA Cement. 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.”
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.”



SINOMA CBMI has successfully completed hundreds of key projects for cement production lines in China and across the world, including almost all foreign-funded projects in China, with total number of cement production lines exceeding 150. Amongst its numerous achievements, CBMI was responsible for constructing the world’s largest cement plant consisting of two 10,000 t/d cement production lines.
BUA Group is one of Nigeria’s largest Foods and Infrastructure conglomerates with significant investments in various sectors of the economy including Cement, Sugar, Steel, Flour & Pasta, Edible Oils, Housing, and Port Operations. It’s cement arm, BUA Cement, currently operates factories in Obu and Okpella, Edo State Nigeria and also in Sokoto through its majority shareholding in CCNN.



As a of sterling performance, shareholders of the company have passed a vote of confidence on the board and management of the Cement Company of Northern Nigeria (CCNN) Plc for improving the fortunes of the company in the last one year.


The shareholders spoke on the sidelines of the company’s 36th Annual General Meeting in Abuja.


Speaking on behalf of a shareholder group, Shehu Mikail, National President, Constance Shareholders’ Association of Nigeria, expressed satisfaction with the track record of the company, saying it has continued to deliver shareholders’ value.
Makail said “The sterling performance of the company was made possible because the Board and Management are being transparent in their reports and also comply with all the necessary rules that govern all the quoted companies in Nigeria.”
Besides, he said the company was able to declare substantial dividends in spite of the poor state of infrastructure, among others.



“With a proactive approach of the Board/Management which prompted the company to make an alternative measure in maintaining a stable production line by using Biomass as a supplementary Kiln fuel through which it as able to reduce the cost of energy. And the company is really abiding to the company mission of producing and marketing high quality cement for national development.”



Judging by the modest success achieved by the company, the shareholders said they would continue to throw their weight behind the board.


Also Afolabi Bankole, a shareholder said that “shareholders would surely support companies that put smiles on their faces when dividends are being declared.”


“We are happy with the performance of the company thus far and that is why we have promised to continuously support all the resolutions passed by the Board/Management because it shows they know how to carry along all the stakeholders, including minority or majority shareholders of the company,” Bankole noted.



Shareholders however stressed the need for the company to raise more funds so as to able to complete the coal line project as expected to be completed by 2017.
Meanwhile, CCNN has posted a profit after tax of N1.9 billion in the financial year ended December 31, 2014, indicating an increase of 23 per cent over the N1.56 billion recorded in the corresponding period of 2013.


From a high of N2.77 billion in 2013, CCNN Plc’s production and operational expenses significantly declined to N2.40 billion in 2014. Shareholders were also apprised of the developments the company took in the financial year, including CCNN Plc’s proposed N48billion cement plant expansion, which will modernise production facilities and raise the company’s output to 2.0 million metric tonnes of cement annually.