BUA’s Obu Cement, CCNN set to merge as Group consolidates entire Cement business

0
  • announces completion date for new $450million
  • Kalambaina II Plant bringing total capacity to 11million mtpa

This morning, the BUA Group announced – in a disclosure filing, that BUA is set to consolidate its entire cement business in a move that will deepen the Nigerian capital market and enhance the growing Nigerian cement industry.

BUA’s Obu Cement, CCNN set to merge as Group consolidates entire Cement business - Brand Spur

Currently, BUA Group’s cement assets include the 2million metric tonnes per annum Cement Company of Northern Nigeria as well as the 6million metric tonnes per annum Obu Cement Company. BUA also announces that the US$450million (Four Hundred and Fifty Million US Dollars)

3million mtpa new Sokoto Kalambaina Cement plant for which construction began in 2018 will be completed by H2, 2020. This will effectively consolidate BUA’s position as Nigeria’s second-largest producer of cement with 11million metric tonnes per annum.

The statement cited Abdul Samad Rabiu, Founder & Executive Chairman of BUA Group, as saying that “this consolidation marks the culmination of the first phase of the BUA mid-term strategic plan for its cement businesses, which currently include four cement plants spread across Obu Cement Company and the Cement Company of Northern Nigeria.

“A new $450million SokotoKalambaina II Plant is scheduled to come on stream in the second half of 2020 alongside another 48MW power plant to complement the existing assets and take advantage of a growing cement market in Northern Nigeria and the West African region, Rabiu added. He said the consolidation would cement BUA’s position as the second-largest cement producer in Nigeria whilst also positioning it to take advantage of the combined synergies to effectively serve Northern and Southern Nigeria based on the strategic locations of its plants.

“We intend to continue creating value for the benefit of shareholders of the consolidated company by maintaining our focus on outperforming the Nigerian cement industry across key indices through a laser-like commitment to excellent products and service delivery, operational efficiency as well as maintaining our leadership position in our home markets,” Rabiu added.