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BUA Cement Plc, led by Nigeria’s second-richest man Abdul Samad Rabiu, has inked a strategic agreement with Sinoma International Engineering Co., Ltd., the technology and engineering wing of China National Building Material Group Co.
This deal aims to facilitate a substantial expansion of BUA Cement’s OBU cement line located in Okpella, Edo State.
The cement plant, which has undergone multiple modernization efforts recently, is poised for yet another round of expansion.
This move is anticipated to increase the plant’s installed capacity, which currently stands at 6 million metric tons per annum (mtpa). Through this expansion, BUA Cement will solidify its standing as one of the leading cement manufacturers in the region.
Presently, BUA Cement has a total installed capacity of 11 million mtpa, positioning it as Nigeria’s second-largest cement producer, trailing Dangote Cement, which boasts an extensive production capacity of 51.55 million tonnes annually across ten countries.
As this new phase of expansion becomes operational, BUA Cement is anticipated to deepen its operational foothold as a cement manufacturer in the country. This strategic move is projected to positively impact the company’s revenue and earnings, affirming its robust position in the industry.
Recent financial disclosures from the company reveal a noteworthy four percent increase in its profits from N63.62 billion ($82.01 million) in the first half of 2022 to N61.36 billion ($79.1 million) at the end of the first half of 2023.
This resilient financial performance is attributed to a remarkable 17-percent surge in the group’s revenue, from N188.56 billion ($243.1 million) in the first half of 2022 to N221.06 billion ($284.9 million) in the corresponding period of 2023.
The robust financial performance underscores BUA Cement’s capacity to navigate challenges and reinforces its standing as a top player in the Nigerian cement sector. This success can be largely attributed to its position as the second-largest cement firm in the country, boasting an installed capacity of 11 million metric tons per year.
