BUA Cement's New Capacity Due Online By Q1
The additional output is expected to lower cement prices in Nigeria.
Nigeria’s BUA Cement intends to bring an additional 6 million tonnes a year (t/y) of cement capacity online by the first quarter of 2024 through the commissioning of new lines at its Obu and Sokoto factories.
The company’s total installed production capacity will increase to 17 million t/y as a result.
Chairman of BUA Cement, Abdul Samad Rabiu said the additional capacity would help to alleviate the pressure on cement prices and availability in Nigeria.
“The completion of Lines 3 and 5 in Obu and Sokoto, respectively, will empower us to offer better prices, and more significant quantities of cement to the domestic market, thus strengthening our market share across Nigeria and Africa. I am confident in BUA Cement’s ability to play a role in reducing cement prices in Nigeria,” he said.
The comments were made during the presentation of BUA Cement’s 2022 financial results on 31 August.
The firm recorded a 40.3% increase in revenue in 2022, to ₦361.9 billion (US$477.7 million). Profit after tax grew by 12.1% to ₦101.0 billion.
In June, BUA Cement secured a US$500 million financing package from the IFC to fund the expansion of its Sokoto plant in northern Nigeria.
BUA Cement is Nigeria’s second-largest cement company after Dangote Cement.
Photo: Annual General Meeting (Source: Twitter/X @BUACement