BUA and Sinoma sign US$1.05bn project agreement

BUA and Sinoma sign US$1.05bn project agreement
23 December 2020

Nigerian cement producer BUA Cement Plc has signed an agreement with Sinoma CBMI of China to build three new cement plants with a capacity of 3Mta in Edo, Sokoto and Adamawa states.

The 9Mta expansion project is estimated to cost around US$1.05bn and will bring BUA Cement’s total capacity to 20Mta, reports This Day. The new plants are in addition to the company’s 6Mta facility in Edo, the 3Mta works in Sokoto state and the 3Mta plant in Adamawa state, which is expected to be inaugurated in the 2Q21.

BUA Chairman, Abdul Sama Rabiu, said: “Nigeria and the surrounding region is still home to huge opportunities in construction, housing, infrastructure, and allied industries.

“Despite these opportunities, there is no doubt that there is still a huge deficit in supply whilst demand continues to increase in Nigeria. This situation has led to an increase in the retail prices of cement despite ex-factory prices remaining partially unchanged.To bridge this huge deficit gap in Nigeria and in the absence of new major investments in the industry, we have taken this decision to invest and build these new plants at a total project cost of US1.05bn dollars which will be completed by the end of 2022.”

Tong Laigou, Sinoma CBMI chairman, said he was pleased to work with BUA and would bring Sinoma’s expertise and experience to complete the project on schedule.

Published under Cement News