Nigeria: BUA's 3Mta Obu plant to start operations

Nigeria: BUA's 3Mta Obu plant to start operations
Published: 30 July 2015

BUA Group is about to release cement from its newly-built US$600m Obu plant in Okpella, Edo State, with clinker production already operational. Cement should be dispatch from the 3Mta facility in the first week of August. The plant was supplied by FLSmidth and the civil construction was handled by construction firm, Julius Berger.

BUA Group chairman/CEO, Abdulsamad Rabiu, said the company's three-year journey in constructing the world-class plant would give a much needed boost to Nigeria's cement industry as well as enhance the development of related sectors including housing and construction.

The greenfield plant is a strategically located for markets to the the north and south of the country "essentially we are 200m to the highway linking Okene, Kogi State and Benin,” said Abdulsamad Rabiu.

"The Obu cement plant, which is about 5km away from Edo Cement company, is 100 per cent owned by the BUA Group. The Edo Cement plant, which has a capacity of  0.5Mta is also being rehabilitated and would be receiving clinker from the Obu cement plant before being fully rehabilitated. The two plants would be rolling out about 3.5Mta of cement. Asides from the initial costs of over US$500m in Obu Cement, we have also invested over US$100m in gas turbines to power a 50MW plant for 24-hour electricity generation as well as the construction of a 30km gas supply pipeline," he said.

To enable stable power supply, a 30km gas pipeline has been built. As far back as April 2014, BUA Group signed a gas sales and purchase agreement with the Nigerian Gas Company, which will guarantee the supply of about 0.9Mm3/day to the Obu plant. However, liquid fuels will also be used as a backup, to ensure production around the clock.

In addition to the Obu Cement plant, BUA Group's other investment in the cement industry include the Cement Company of Northern Nigeria Plc and Edo Cement Company Ltd. The official commissioning ceremony for the new Obu Cement Plant is planned for 3Q15.