BUA Cement, Sinoma seal $600m pact to double capacity
With the successful start of production at its new Obu Cement Plant, BUA Group has unveiled plans to double its plant capacity by sealing a $600million contract with China’s Cement manufacturing supplier, SINOMA CBMI.
Under the pact, Sinoma is expected to commence the construction of a second production line.
According to a statement from the company, the 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 per cent market share by the time the expansion is completed.
Speaking at the signing ceremony which held at the SINOMA CBMI Headquarters in China, Executive Chairman of BUA Group, Abdulsamad Rabiu, said that the expansion of the plant’s capacity was in line with the Group’s organic growth strategy for its cement arm, BUA Cement, adding that the move also expected to further reduce the price of cement in a sustainable manner by making it more accessible and affordable.
“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 and we expect that this will further drive down the price of cement in a sustainable manner. 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.”
Board Chairman of SINOMA CBMI, Tong Laigou, 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.”