Nigerian Company Speaks on Building Another Cement Line to Compete With Dangote, Larfarge, Others
- BUA Cement's chief executive said that the company has signed an agreement to expand its Sokoto production line
- Explaining the move, he said the company's market share has grown from 2% to over 30% in the last eight years
- He also said the company wants to become the top producer of cement in the country by lowering the cost of cement
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
Yusuf Binji, the managing director/chief executive of BUA Cement, has announced that the company has inked a deal to extend its Sokoto manufacturing line, bringing its installed capacity to 20 million tons annually.
Source: UGC
Binji said in the last eight years, the company's market share has increased from 2% to over 30%.
Speaking over the weekend in Abuja during the 12th anniversary of the commercial relationship between BUA Group and CBMI Construction Company Limited, Binji stated that the company's goal was to become the leading cement maker in the nation by "making cement affordable and available nationwide."
PAY ATTENTION: Share your outstanding story with our editors! Please reach us through info@corp.legit.ng!
He said the company has grown its capacity to over 17 million tons annually from its modest beginnings in the industry with roughly 500,000 tons.
He said,
“We’ve built a strong brand, producing two cement brands: BUA Cement and Sokoto cement. Our cement product is widely recognized as the best in Nigeria, and we hope to receive endorsement from engineers present here today.
“We’ve executed several projects with CBMI and continue this partnership, extending into operation and maintenance and mining.
The MD added:
“The journey hasn’t been easy, but it has brought interesting developments."
ThisDay reported that AbdulSamad Rabiu, chairman of BUA Group, thanked CBMI for their support and dedication to partnership, emphasising that the foundation of the alliance was efficiency, trust, and cooperation between the two parties.
Plans for new cement line
Speaking on development so far, he said:
“Our first year of operation was successful, and we realised the potential of the cement business. We then acquired a small company in Nigeria, which came with Edo Cement, and expanded our operations.
“We faced another challenge when we needed to erect a cement plant. European companies were unwilling to come to Nigeria, so we turned to China and found CBMI.
“They not only did the er*ction but also supplied equipment and did the civil construction. We signed a contract with CBMI, and they delivered. We have since built seven lines with them and are about to sign another contract for the eighth line.”
Reps issue new directives to Dangote, others
Legit.ng earlier reported that the House of Representatives Joint Committee investigating the increase in cement prices in the country issued a directive to manufacturers, including Dangote Cement, BUA Cement, and Lafarge Africa.
Jonathan Gaza, the chairman of the committee, said that the manufacturers must provide a detailed breakdown of production costs to justify the recent increase in bag cement prices.
The lawmakers noted that although cement prices in the North and some other states have reduced to N8,000 after selling for as high as N13,000 to N15,000, depending on the brand, residents in some states still pay as much as N10,000 per bag.
Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.
PAY ATTENTION: Unlock the best of Legit.ng on Pinterest! Subscribe now and get your daily inspiration!
Source: Legit.ng
