BUA Group says Looks at Exports as the Next Frontier for Cement Industry

The journey of the Nigerian integrated cement manufacturing, which took a new course just over a decade ago, has seen Nigeria move from a nation with under three million tonnes of production capacity to a country that will have some 45 million tons of cement manufacturing capacity by next year – implying about 15-fold increase in capacities.

This important feat has not only made Nigeria self-sufficient in cement production but also a net exporter of the commodity.To consolidate this success, indigenous manufacturers are exploring the export option in a move that is expected to improve diversity in product offerings and ultimate reduction in the price of the commodity.

According to the Chairman of BUA Group, Abdulsamad Rabiu, the commissioning of its Obu cement plant as well as the expanded three million tonnes plant through a second line prepares it for the export market.

“The success and impressive efficiency of the Obu cement plant in its first year of operation, which was over 90% in an industry where efficiency averaged 60%, led BUA to commence the construction of a second cement plant line of 3 million tonnes.

“This cement plant is engineered to be the most environmentally friendly cement plant in Africa with the most advanced duct emission systems”, he added.He explained that the deployed technology has the latest filtration with capacity of less than 10 milligram per normal cubic meter, while the deployed natural gas helps the plant to have a very green environment.

“Supplied by the FL Smidth of Denmark, one of the best cement equipment suppliers in the world and powered by Siemens turbines, the plant that has the capacity to produce about 9,000 tons of cement per day or 230,000 per month. CBMI of China is currently building the second Obu cement line on an EPC contract with technology from the best European suppliers”, he said.

Speaking at the commissioning of BUA Cement plant recently, Vice President Osinbajo, who restated government’s commitment to the economic recovery and growth plan of the federal government, said the administration would continue to prioritise the role of the private sector in building a sustainable economy for the country.

According to him, the administration will specifically enable the private sector to achieve their investment drive.“For us as a government, we will do all we can to encourage investment of this type. This is the cornerstone of our economic policy. There is no other way to grow this country more than active participation of the private sector.

“As a government we are committed to creating an enabling environment and eliminating the burdens of investors. We will continue to ease the business environment, while going the extra mile to determine how we can assist the private sector to grow the economy”, he said.

Lauding the organisation’s initiative in building a 5000kw gas plant to power the facility, Osinbajo said the administration had made the clear that the nation’s economic recovery and growth must be private sector driven. He noted that the investment, which is expected to turn the company’s yearly cement output to eight million tonnes by next year, would consolidate the nation’s drive for cement sufficiency and boost the country’s export potential.

With the investments, the Vice President was hopeful that the country would reduce cost of cement in the local market, while providing jobs for millions of Nigerians. Osinbajo said: “This ultra-modern cement plant is a big boost to Nigerian economic. It will bring thousands of direct jobs to skilled and unskilled people. This will consolidate Nigeria’s self-sufficiency in cement and boost our export capacity.”

 

 

 

 

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