BUA Cement Plc has signed an agreement with Sinoma CBMI of China for the building of additional three production lines of 3 million metric tonnes per annum each this week.
Upon completion, this will bring BUA Cement’s total capacity to 20million metric tonnes by 2022. At 9million tonnes combined capacity, this is the single largest contract ever awarded in the Nigerian Cement Industry for the construction of new cement plants at the same time and by a single company, in Nigeria.
The production lines are to be located at Adamawa, Edo and Sokoto states. Since the merger, BUA Cement has focused on leveraging on its wider geographical footprint to access new markets and claim a stronger market share.
The announcement came as BUA Cement approval to raise about N100 billion in series one of its 7-year Fixed Rate Senior Unsecured Bonds under its N200 billion bond programme closed on Monday 21 December 2020.
BUA Cement Waxing Stronger Against All Odds?
In Q3:2020, BUA Cement Plc. improved on the revenue gains made in H1:2020 to deliver another impressive topline performance in 9M:2020. The company grew sales volumes by 15.95%, from 3,291 kilotons in Q3:2019 to 3,816 kilotons in Q3:2020. This puts standalone revenue for the quarter at NGN55.29bn – a 39.72% improvement compared to NGN39.57bn in Q3:2019.
While BUA Cement efforts have resulted in enhanced brand awareness and a wider distribution chain, performance in Q3:2020 was largely supported by the pick- up in economic activities following the easing of lockdowns in Q2:2020 and the relatively short rainy season which aided cement distribution. Overall, the 9M:2020 financial scorecard showed revenue growth of 20.95%.