Chairman of BUA Group, Abdulsamad Rabiu
By Benjamin ameh
With the successful start of production at its new Obu Cement Plant, BUA Group is set to further double the capacity of the plant as it has signed a USD600million contract with China’s leading Cement manufacturing supplier, SINOMA CBMI to commence the construction of a second production line. This landmark agreement which was signed at the SINOMA CBMI offices in China recently will further bolster BUA Group’s share of the cement market in Nigeria to over 20% market share by the time the expansion is completed.
Speaking at the signing ceremony which held at the SINOMA CBMI Headquarters in China, Abdulsamad Rabiu, Executive Chairman of BUA Group, said that the new line was part of the Group’s organic growth strategy for its cement arm, BUA Cement. “Given their proven track record and vast expertise in deploying cement plants across the world, we are confident in SINOMA’s ability to deliver a world-class second line for our Obu Cement Plant as well as meet our stringent environmental, safety, quality and technical requirements for our plants and products.
This additional capacity forms part of our strategic growth programme for our Cement arm, BUA Cement. In the long term, we expect to commit significant investments in cement production across the continent whilst also ensuring that the quality of our products remain a key differentiating factor in the marketplace.”
Tong Laigou, Board Chairman of SINOMA CBMI said, “We are happy to sign this contract and extend our ongoing partnership with BUA Cement. This signing follows an earlier project to install an additional 1.5mtpa capacity to Sokoto Cement – also subsidiary of BUA Cement, which is expected to be completed soon and commissioned in 2016. We intend to bring our wealth of experience and expertise to bear in bringing this project to fruition.”
SINOMA CBMI has successfully completed hundreds of key projects for cement production lines in China and across the world, including almost all foreign-funded projects in China, with total number of cement production lines exceeding 150. Amongst its numerous achievements, CBMI was responsible for constructing the world’s largest cement plant consisting of two 10,000 t/d cement production lines.
BUA Group is one of Nigeria’s largest Foods and Infrastructure conglomerates with significant investments in various sectors of the economy including Cement, Sugar, Steel, Flour & Pasta, Edible Oils, Housing, and Port Operations. It’s cement arm, BUA Cement, currently operates factories in Obu and Okpella, Edo State Nigeria and also in Sokoto through its majority shareholding in CCNN.
As a of sterling performance, shareholders of the company have passed a vote of confidence on the board and management of the Cement Company of Northern Nigeria (CCNN) Plc for improving the fortunes of the company in the last one year.
The shareholders spoke on the sidelines of the company’s 36th Annual General Meeting in Abuja.
Speaking on behalf of a shareholder group, Shehu Mikail, National President, Constance Shareholders’ Association of Nigeria, expressed satisfaction with the track record of the company, saying it has continued to deliver shareholders’ value.
Makail said “The sterling performance of the company was made possible because the Board and Management are being transparent in their reports and also comply with all the necessary rules that govern all the quoted companies in Nigeria.”
Besides, he said the company was able to declare substantial dividends in spite of the poor state of infrastructure, among others.
“With a proactive approach of the Board/Management which prompted the company to make an alternative measure in maintaining a stable production line by using Biomass as a supplementary Kiln fuel through which it as able to reduce the cost of energy. And the company is really abiding to the company mission of producing and marketing high quality cement for national development.”
Judging by the modest success achieved by the company, the shareholders said they would continue to throw their weight behind the board.
Also Afolabi Bankole, a shareholder said that “shareholders would surely support companies that put smiles on their faces when dividends are being declared.”
“We are happy with the performance of the company thus far and that is why we have promised to continuously support all the resolutions passed by the Board/Management because it shows they know how to carry along all the stakeholders, including minority or majority shareholders of the company,” Bankole noted.
Shareholders however stressed the need for the company to raise more funds so as to able to complete the coal line project as expected to be completed by 2017.
Meanwhile, CCNN has posted a profit after tax of N1.9 billion in the financial year ended December 31, 2014, indicating an increase of 23 per cent over the N1.56 billion recorded in the corresponding period of 2013.
From a high of N2.77 billion in 2013, CCNN Plc’s production and operational expenses significantly declined to N2.40 billion in 2014. Shareholders were also apprised of the developments the company took in the financial year, including CCNN Plc’s proposed N48billion cement plant expansion, which will modernise production facilities and raise the company’s output to 2.0 million metric tonnes of cement annually.