Table of Contents
Key Points
- BUA Group partners with Starlinger to produce 600 million polypropylene bags annually.
- Partnership supports BUA's growing cement, sugar, and flour operations.
- Abdul Samad Rabiu strengthens BUA's supply chain control with in-house packaging production.
BUA Group to produce six hundred million polypropylene bags annually
BUA Group, one of Africa’s largest industrial conglomerates owned by Nigerian billionaire Abdul Samad Rabiu, has partnered with Austria’s Starlinger & Co. Limited to establish a state-of-the-art packaging production facility.
The facility will have the capacity to produce an estimated six hundred million polypropylene block-bottom bags annually, marking a significant step in BUA’s strategy to diversify its operations and achieve stronger supply-chain control.
With this development, BUA Group will reduce its reliance on external suppliers while meeting the growing demand for sustainable and cost-effective packaging solutions for its cement, sugar, and flour production units. The company aims to support its expansion across Africa, improve internal production efficiency, and enhance cost savings.
The partnership also represents a significant win for Starlinger & Co. Limited, a global leader in packaging machinery. The agreement marks Starlinger’s largest contract in Africa and its second-largest worldwide, reflecting the scale and importance of the deal.
Harald Neumuller, CEO of Starlinger, highlighted the strategic value of the partnership, stating, “We are honored to collaborate with BUA Group, a distinguished conglomerate with remarkable achievements. This project reflects our commitment to delivering industrial packaging solutions tailored to BUA Group’s diverse operations.”
The facility is expected to position BUA Group as a leader in Africa’s packaging industry, driving growth and job creation while supporting its internal production needs. As demand for sustainable packaging materials continues to rise, BUA’s entry into the sector is expected to have a positive impact on its operational costs and supply-chain control.
Abdul Samad Rabiu drives BUA Group's vertical integration strategy
This latest venture is part of the broader vision of Abdul Samad Rabiu, the billionaire founder and Executive Chairman of BUA Group. Known for his ambitious growth strategy, Rabiu emphasizes vertical integration and expansion across multiple sectors.
With an estimated net worth of $4.8 billion, Rabiu ranks among Africa’s wealthiest businessmen. His influence spans industries including cement, sugar, flour, energy, and infrastructure.
BUA Group, which began as a trading company in 1988, has grown into one of Nigeria’s largest and most diversified conglomerates. The company holds major investments in cement production, sugar refining, edible oils, ports, and infrastructure development. Its subsidiary, BUA Cement, is publicly listed on the Nigerian Exchange, where Rabiu serves as the largest shareholder, giving him a controlling interest in the company.
Speaking at the signing of the agreement with Starlinger, Rabiu underscored the importance of the new packaging facility, stating, “As we focus on securing the future of our business through innovative investments, having our own packaging unit becomes imperative. This facility will meet the packaging needs of our various factories, including cement, sugar, and flour, and support future expansion plans.”
By establishing its own packaging production facility, BUA Group aims to reduce operational costs, strengthen its supply chain, and support internal production. The facility will meet the packaging needs of BUA's key production units, including cement, sugar, and flour, which are significant revenue drivers for the company.
This deal with Starlinger is a pivotal part of BUA Group's long-term strategy to solidify its dominance in Africa’s industrial sector. By controlling the production of its own packaging materials, BUA will reduce dependence on third-party suppliers and increase cost efficiency, further enhancing its competitive edge in the market.
