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BUA Group, the parent company of Kalambaina Cement, has signed a contract with CBMI Construction Company, a subsidiary of Sinoma International Engineering Co. Ltd, for the construction of a new three million metric tonnes per annum (mtpa) Kalambaina Cement Line II in Sokoto State.

The construction of the new cement plant is line with BUA Cement's strategic midterm expansion programme. Less than a week ago, the Security and Exchange Commission (SEC) had approved the merger between the Cement Company of Northern Nigeria (CCNN) and BUA’s Kalambaina Cement Company.

“The Nigerian market is still greatly underserved, and with the projected growth in major infrastructure projects and spending over the next few years, it is important that local manufacturers are able to scale effectively to meet current and projected demand,” said Abdul Samad Rabiu, CEO of BUA Group and Chairman of CCNN.

He added that the contract is not the first partnership between BUA Group and CBMI Construction. The first BUA Kalambaina plant was constructed by the Chinese firm.

The Chairman of CBMI, Tong Laigou, signed on behalf of CBMI Construction, while Rabiu signed for BUA Group.

Upon completion of this project, BUA Group said the total installed capacity of its cement assets will be 11 million mtpa. Currently, the cement assets of BUA Group include six million mtpa Obu Cement I & II plants in Okpella, Edo State; the 500,000 mtpa Edo Cement Plant; the 1.5 million mtpa Kalambaina Cement Plant and the 500,000 mtpa Sokoto Cement Plant. The group also owns more than 90 per cent shares in the new CCNN, which is touted as Nigeria’s 12th largest company by market capitalization.

According to BUA, its strategic cement expansion programme, which focuses on key regional and export markets, has made it the second-largest producer of cement by volume in Nigeria. Dangote Cement remains the dominant player in the Nigerian domestic cement market with 12.7 million mtpa, accounting for nearly 65 per cent of the Nigerian market volume. BUA Cement’s recent merger has also solidified the company’s leadership position in the North-West, South-South and South-East markets in Nigeria.

“We will continue to deliver quality products, which has earned us the ‘King of Strength’ and ‘King of Cement’ monikers among block makers who form the largest users of cement in Nigeria,” Rabiu said.