BUA signs Agreement with Sinoma CBMI to Build 3 Cement Plants in Nigeria

Nigerian cement producer BUA Cement has signed an agreement with Chinese contractor Sinoma CBMI to build three new cement plants, each with a capacity of 3 Million Tonnes Per Annum (MTPA). 

by Diana Muringo
January 14th, 2021

The new cement plants will be located in the states of Edo, Sokoto, and Adamawa. 

BUA Cement PLC is Nigeria’s second-largest cement company. It is also the largest producer of cement in the country’s North-west, South-south, and South-east geopolitical zones. This 9MTPA expansion project will bring BUA Cement’s total capacity to 20MTPA. 

The estimated cost of the project is US$1.05bn, and the works are predicted to be completed by the end of next year. This project is in a league of its own as the largest contract to ever be awarded by a single company in the Nigerian cement industry for the construction of cement plants. 

These three new plants will be an addition to the existing 3MTPA plants in Sokoto and Adamawa, and 6MTPA plants in Edo state. The Adamawa plant is set to be inaugurated in the second quarter of this year. 

Abdul Samad Rabiu, the Chairman of BUA Group, explained that the decision to carry out this expansion project was with the aim to transform Nigeria’s manufacturing industry, and of course its cement production capacity. 

“Nigeria and the surrounding region is still home to huge opportunities in construction, housing, infrastructure, and allied industries. Despite these opportunities, there is no doubt that there is still a huge deficit in supply whilst demand continues to increase in Nigeria,” he said.

Samad went on to explain, “This situation has led to an increase in the retail prices of cement despite ex-factory prices remaining partially unchanged. To bridge this huge deficit gap in Nigeria and in the absence of new major investments in the industry, we have taken this decision to invest and build these new plants at a total project cost of 1.05 billion dollars which will be completed by the end of 2022.” 

Both parties seem to be pleased to be working on this project together and anticipate a good working relationship. This was evident when Sinoma CBMI Chairman, Mr. Tong Laigou, stated that he was happy to be working with BUA on this groundbreaking project. He also said that Sinoma would come at full throttle to apply its expertise and experience to this endeavor to ensure the project’s success within the stipulated timeline. 

BUA and Sinoma CBMI have had a long-standing partnership and Mr. Tong Laigou applauded BUA’s aspirations to be the best cement manufacturer in Africa. He says that Sinoma CBMI is pleased to work on this project to fulfill this dream. 

Photo: The Kalambaina Cement Plant, BUA Group (buagroup.com)

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