Nigeria: CCNN requires NGN45bn for new line

Nigeria: CCNN requires NGN45bn for new line
23 August 2013

A new 1Mta clinker line together with a coal grinding mill and accessories is likely to cost Cement Company of Northern Nigeria (CCNN) around NGN45bn (US$278m). CCNN intends to add the new kiln line, which will produce its Sokoto brand of cement, to meet rising demand in Nigeria. Demand rose to 18.3Mt last year and since 2005, the cement industry nearly doubled its capacity, according to local newspaper Business Day.

The Nigerian market is continuing to grow and producers are still playing catch-up with demand in terms of adding new capacity. Dangote's Gboko works will be expanded by 1Mta in 2013, while the Mfamosing plant of Unicem previously announced that it will be constructing a second 2.5Mta kiln line to come on-stream in 2016.

Meanwhile, at the 34th annual general meeting, Alhaji Abdulsamad Rabiu, CCNN chairman, noted that the company's turnover amounted to NGN15bn in 2012 compared to NGN13bn in 2011. However, after-tax profits declined to NGN1.1bn compared to NGN2.3bn. "Although the turnover has increased, the profit after tax has gone down. This can be attributed to the high cost of oil," he said.

Published under Cement News