Another Cement Company Set to Launch New Product as BUA, Dangote, Others Crash Prices
- The Bauchi state commissioner for natural resources, Muhammad Maiwada, said a new cement factory will soon be cited in the state
- The commissioner disclosed that the new factory is valued at about $1.5 billion with a capacity of 10 million tonnes annually
- The factory is projected to operate for 100 years and become a lasting pillar of economic development for the state
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Bauchi state commissioner for natural resources, Muhammad Maiwada, has assured stakeholders that the new cement factory to be sited in Gwana, Alkaleri local government area, is a move to transform the state’s economy.
Maiwada disclosed this while signing a memorandum of understanding (MoU) with Resident Cement Company and its Korean partners to establish a cement plant with a yearly capacity of 10 million tonnes.
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New factory will last for 100 years
He noted that development results from foresight and determination to bring lasting economic changes and to attract high-value investment that secures a prosperous future for generations.
He stated that the cement plant is valued at about $1.5 billion and is expected to be a landmark project with far-reaching benefits in several sectors.
According to him, the factory is projected to operate for 100 years and become a lasting pillar of economic development for the state.
Punch reports that Maiwada said the new plant will inject new momentum into the state’s economy, create jobs, and boost the residents’ quality of life.
The commissioner stated that the new facility would employ over 10,000 skilled and unskilled workers across the state’s geopolitical zones to address unemployment and provide career opportunities for residents.
He said:
“Plans for the factory include a dedicated 250-unit housing estate for staff and a massive trailer park capable of accommodating over 3,000 trucks.”
New facility to be powered by coal and gas plant
He stated that the the plant will also contain a 150-megawatt coal and gas-powered plant to meet its energy demands and boost the regional power supply.
According to the commissioner, investors will fund the cement plant to ensure it proceeds without hitches and does not burden the state financially.
Preliminary activities, including geophysical exploration, are ongoing and are expected to last three months, laying a solid foundation for the project’s success.
Mangal Cement begins production
The development follows the emergence of a new cement firm, Mangal Ceement, which analysts believe will change Nigeria's cement pricing equation.
Mangal Cement, which has already commenced production, disclosed that it hopes to begin producing about 400 trucks of cement daily.
The company recently addressed the pricing of its cement, which social media users say was sold for N6,000 per bag.
The company, however, issued a public statement regarding the cost of its cement product.
Traders sell BUA, Dangote cement below N9,500
Legit.ng earlier reported that Financial Derivatives Company Limited noted that the average price of a 50kg bag of cement dropped to N7,500 in October 2024.
The new price represents a 21.05% reduction compared to the N9,500 average price in September 2024.
FDC disclosed the changes in its latest commodity update for November.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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