BUA Cement Plc, a leading cement company led by Nigeria’s second-richest man, Abdul Samad Rabiu, has commissioned a 3-million-metric-tonne cement factory in Sokoto, a state in Nigeria’s northwestern region, as part of its expansion plans.
The new cutting-edge cement production line was inaugurated by Rabiu, who is the chairman of the leading cement manufacturer.
Rabiu explained that BUA Cement has continued on its expansion plans to meet the ever-growing demand for cement in Nigeria, as well as regional exports into other countries since the company’s first greenfield cement complex was commissioned more than four years ago.
In line with the cement maker’s commitment to bolstering domestic supplies, he noted that BUA Cement has commissioned four plants in the past six years as it moves to ramp up its production capacity to 17 million metric tonnes.
To achieve the goal, the company will continue to invest in the cement industry until Nigeria is self-sufficient and cement is available, accessible and affordable to all Nigerians.
The new facility’s commissioning supports BUA Cement’s mid-term plan to increase its production capacity as it seeks to consolidate its cement industry leadership over Lafarge Africa Plc, a subsidiary of the Swiss multinational company, LafargeHolcim.
Despite the addition of these facilities to its existing production infrastructure, the cement maker lags behind industry rival Dangote Cement in terms of revenue, installed infrastructure and production capacity. Dangote Cement is Africa’s largest cement maker, with a production capacity of 48.6 million tonnes per year spread across 10 countries.
As of press time on Jan. 27, shares in the cement manufacturer were worth N68 ($0.164), 2.87-percent more than their opening price on the local bourse this morning.
Its market capitalization is valued at N2.37 trillion ($5.7 billion), making it the fourth most capitalized company on the Nigerian Exchange.
BUA Cement signed an agreement with Wartsila OY of Finland nearly three weeks ago to build a 70-megawatt dual-fuel power plant for the BUA Cement Sokoto Line-4 in Sokoto State.
The gas power plant will be BUA’s fourth power plant to be completed as the company strives to increase its total production capacity to 17 million metric tonnes by 2023.
