News & Press Releases

BUA Group has announced plans to construct a N7.5billion Naira ultra-modern specialist hospital in Kano State of Nigeria through its foundation, BUA Foundation. This was disclosed by the Executive Chairman/CEO of BUA, Abdulsamad Rabiu, during a courtesy visit by the Kano State Governor, H.E. Dr. Abdullahi Umar Ganduje to BUA Group’s Corporate Headquarters in Lagos, Nigeria on Tuesday.

Speaking during the visit, the Executive Chairman of BUA Group, Abdulsamad Rabiu thanked the Governor for the visit and commended the Governor on his strides towards making Kano state a viable destination for businesses. Abdulsamad also expressed contentment with the Private-Public partnership initiatives of the Kano State Government and assured the Governor that BUA Group is willing to collaborate with the state on various projects that are in line with BUA’s sustainable impact investment philosophy.

Speaking further on the Ultra-Modern specialist hospital to be built by BUA Foundation, Abdulsamad Rabiu thanked the Governor for approving land for BUA Foundation in the heart of Kano City. According to Abdulsamad Rabiu, the proposed N7.5billion, 220-bed specialist Hospital which BUA Foundation is building cover a built up area of 15,000sqm and will have the most modern imaging and diagnostic equipment that will go a long way in alleviating the suffering of Nigerians who need medical attention and reduce our dependence on foreign medical tourism. This, according to the BUA Chairman, will further complement the state government’s stride in healthcare delivery for the people of Kano such as the recently commissioned Muhammadu Buhari specialist hospital in Giginyu. .

On his part, the Kano State Governor, Abdullahi Ganduje in company of the Speaker of the State House, Rt. Hon Yusuf Abdullahi Ata and other members of his cabinet expressed delight over BUA’s multi-million dollar BUA Rice Mill in the state which is the largest in Nigeria and Zero-Interest Rice Outgrowers Scheme which has achieved very positive results so far. He also said the people of Kano State are proud of BUA’s contribution to the Nigerian economy and commended BUA Group for promoting the local production to reduce the over dependence on foreign made goods.

Ganduje went on to describe BUA Group as one of the companies that have made Kano state a true land of commerce with its investments across key sectors of the economy.

BUA Group is a conglomerate with varied interests in Foods, Mining and Infrastructure. Established in 1988 by billionaire industrialist, Abdulsamad Rabiu, BUA Group’s investments in cement, sugar estates and refineries, rice, oil & gas, steel, port operations and logistics make it one of the largest employers of labour in Nigeria and one of the largest contributors to Nigeria’s GDP.

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The Rotary Club of Gbagada South in partnership with BUA Group has rendered free Ear, Nose and Throat clinical screening to pupils of Araromi and Kinniun-Ifa Primary Schools in Lagos State. This initiative is part of BUA’s Corporate Social Responsibility (CSR) commitment to improving the lives of people in communities where they operate..

Speaking on the one-day exercise, O’tega Ogra, Group Head, Corporate Communications at BUA Group, thanked the Rotary Club of Gbagada South for providing a platform for the screening to take place which would help detect hearing related problems in the primary school pupils and also provide hearing aids for those with hearing difficulties.

According to Ogra, “The partnership is one of the numerous ways we give back to the society at BUA, from health care to environmental sustainability to education, entrepreneurship amongst others. BUA will continue to contribute immensely and partner with like-minded organizations to impact lives positively.

The President, Rotary Club of Gbagada South, Demola Olutusin who on his part lauded the partnership with BUA Group also bemoaned the increasing rate of deafness in the community due to late diagnosis and treatment..

Olutusin said the exercise became pertinent to address the cases which could have been remedied if only they were discovered at its early stage. He said after the exercise, those with hearing problems will either be given hearing aids or provided treatments courtesy of the support from BUA.

Olutusin also disclosed that the club has provided a borehole, library and playing ground for the students and are in the process of constructing a block of 16 toilets in a primary school within the area.

BUA Group is Nigeria’s largest foods and infrastructure conglomerates. The company recently announced plans to construct a N7.5billion 220-bed, specialist hospital in Kano State through its foundation, BUA Foundation.

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Executive Chairman/CEO of BUA Group, Abdulsamad Rabiu received the Silverbird Extraordinary Business Achievement Award at the 2017 Silverbird Man of the Year Awards in recognition of his contributions to unlocking opportunities in business, human capital and development in the Nigerian economy. Congratulations Sir. He dedicated the award to his family, colleagues, business partners and most especially, every employee of BUA Group.

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The expansion drive of BUA Cement, which commenced last year, will be completed in 2018, the Executive Chairman/Chief Executive Officer, BUA Group, Abdulsamad Rabiu, has said.

Rabiu, who disclosed this on Saturday in Abuja at the company’s annual customers’ forum and awards, explained that through the expansion drive, the firm would be able to double its production capacity.

He described cement production as a challenging business, but noted that despite the harsh operating environment, the company would continue to meet the aspirations of its stakeholders.

At the event, the company gave out millions of naira to its customers, including cars and other valuable items, for their loyalty to the brand.

Raabiu said, “This award is our little way of celebrating you as you have been with us constantly throughout the year. Your loyalty to the brand has helped us to grow and we will continue to celebrate customers who have been there in this period of economic crisis.

“We have embarked on an expansion drive and this will be completed in 2018. Cement business is a very challenging one, because it is a capital intensive business; but I want to assure you that our expansion project will be completed by the end of next year or at the beginning of 2018.”

The Acting Managing Director of the company, Mr. Yusuf Benji, said that despite the challenging operating environment, the company would not compromise on the issue of quality of its products.

“Our watchword is quality. Anybody that knows our products can attest to the high level of quality that it has and that is not going to be compromised. We are going to give Nigerians value for their money,” he stated.

Industrialist and Executive Chairman of the BUA Group, Abdulsamad Rabiu has urged foreign investors to invest in Nigeria.Rabiu said this in Lagos while receiving an award as the West Africa Industrialist of the Year, 2016 for his contributions to the growth of the Nigerian and West African economy.

The award tagged All Africa Business Leaders Award (AABLA), which has been on since 2011 was organised by CNBC Africa to recognise leaders and change-makers of business in East, West and Southern Africa.

Rabiu expressed his appreciation to the organisers for the award. He also thanked his wife for her support and tolerance despite the demanding nature of running a large business.

He also thanked the workers of BUA Group for their dedication, which had made the award possible.He added that the group’s strategic focus remains to diversify to business areas with “greater potential for export where most of the materials needed for production can be sourced locally, creating jobs, and cutting costs to ensure our people and continent remain the chief beneficiaries in our business, whether they are our workers or consumers.”

Under his leadership, BUA Group, which he founded 28 years ago, has grown to be ranked among Africa’s largest food and infrastructure conglomerate, remaining a pivotal player in the sugar refining, cement production, real estate, steel, logistics and port operations sectors of the continent.

Industry watchers say Rabiu’s win at the keenly contested AALBA awards are an indicator of his business acumen and knack for juxtaposing tactical expansion with a strong sense of dogged determination, foresight and a dedication to innovation.

The BUA Group has over the past few years embarked on a series of strategic acquisitions, which has seen its business portfolio expand to include the Cement Company of Northern Nigeria (CCNN), Edo/OBU Cement, BUA Sugar Refinery, BUA Ports and Terminals, and BUA Estates, amongst other agribusiness holdings.

Notably, in 2008, the Group set up the second-largest sugar refinery in Sub-Saharan Africa, which has an installed capacity of 720,000 metric tonnes. It’s second 720,000 metric tonnes sugar refinery in Port Harcourt is set to come on stream in 2017.

Most recently, the conglomerate opened talks with China’s Sinoma to build a steel plant in Nigeria and two cement plants in East Africa for $1.9 billion, a signal that greater dominance – and jobs – for Nigerians and Africa’s business climate is in the offing.

The CNBC All Africa Business Leaders Award is fast becoming Africa’s most prestigious business awards. Winners of the AABLA exemplify the best in African leadership. They epitomize the core values of a successful leader, strength, innovation, ingenuity, knowledge and foresight – values that are imperative to carving out powerful business in a Pan-African and global economy.

Cement manufacturers have warned that if the naira is further devalued, the price of cement would be further increased.

Cement manufacturers need substantial amount of forex to pay expatriates, buy diesel, spare parts and mining machinery. It has also been disclosed that it is easier to import gypsum than to use local gypsum because of the poor quality and high price of local gypsum.

Addressing shareholders at the 37th Annual General Meeting (AGM) of the Cement Company of Northern Nigeria (CCNN) in Abuja yesterday, the Chairman of the company Alhaji Abdulsamad Rabiu, said “times are tough and difficult, and the availability of forex is a big problem. If the naira devalues further, the cost of anything that is imported will go up. Hanging in there to remain in business.”

Defending the recent increase in the price of cement to N2,000, Abdulsamad Rabiu said CCNN will continue with production and make a little bit of money even if it is not much, to keep running. He told shareholders that a competitor has posted N30 billion loss for this year.

Rabiu tied the increase in the price of cement to what he called “the cost of energy doubling.” Describing the current economic environment as dire, Rabiu said the cost of procuring LPFO, diesel, fuel and other consumables have gone up because of the difficulty in accessing forex.

He said: “The situation is dire, but going forward, we pray it gets better. Forex now is for oil production. The price of oil that has come down is also affecting forex and without forex it is not easy to do business. CCNN will continue to do its best, shareholders should be patient as the company is making efforts to access coal which is cheaper. The price of cement has not gone up as it should have been. It could have been worse at N2,000/bag. The price of cement in Nigeria compared to surrounding countries is reasonable.”

The CCNN chairman said “LPFO which is the main energy used by the company has not been supplied by the Kaduna Refinery since August 2014, hence it has to rely on other sources, mostly importers as supply from other refineries is also epileptic. The company had to, at intermittent periods during the last quarter of 2015, shut down plant due to scarcity and cost of energy.

“There is quite a lot of talk on providing forex for manufacturers and assisting them with forex involving the CBN. But we are waiting for modalities on the planned initiative to make forex easily accessible to manufacturers, a lot of manufacturers are suffering and it is not an easy situation at all” he said.

Governor seeks end to importation

The Kwara State government has lauded BUA Group for its $300 million investment in sugar production in Lafiagi.

Governor Abdulfatah Ahmed said more investments are required to end the nation’s dependence on imported sugar, adding that the country has the competitive advantage to be a large producer and exporter of the commodity.

The governor described the company’s move as a step in the right direction as it will end importation of sugar and expand the industrial base of the state’s economy.

He said Nigeria remained a large sugar consumer, arguing that the high consumption rate was largely attributed to the nation’s increasing population as well as continuous growth in food processing for which sugar is a major ingredient.

Ahmed urged local and foreign investors to invest in the nation’s sugar industry to end importation of the commodity, saying the country has the capacity to meet its local demand for sugar.

According him, data made available by the United States Department of Agriculture showed that Nigeria’s raw sugar import last year was estimated to be about 1.345 metric tons per annum (mtpa) which is expected to rise to about 1.7mtpa.

He said: “This is because of the absence of competitive alternatives to meet the demand for local consumption.This is rather worrisome considering the fact that Nigeria is endowed with the manpower, raw materials and excellent climate condition to produce enough sugar to meet local demand and of course export.

“It is imperative to change the statistics in sugar production not to only to save us from wasting our scarce foreign exchange but also generate wealth and enhance economic growth. We have identified agriculture as a major strategy to create wealth and jobs for the youths which we believe will be felt in the medium and long-term. We are putting the policies and structures in place for an agro-led economic diversification.”

The governor said the sugar sub-sector is important due to its ability to contribute largely to solving unemployment, development of other subsidiary industries and its significant impact on the rural economy.

He said: ”I am pleased to be here to flag off the 2016 cane planting season which represents another positive step in the nation’s resolve to end importation of sugar in the country and also expand the base of the state’s economy.

“I want to commend the management of BUA Group for its investment in Lafiagi Sugar company which will produce about 1.5 mtpa as well as employ about 6000 people directly and another 19000 indirectly. This investment will significantly reduce youth unemployment in this area and bring more prosperity to the state.”

Cement Company of Northern Nigeria (CCNN) Plc recorded a turnover of N13.04 billion in 2015 as the company braced the tough macro-economic and industry environment to deliver a resilient performance.

Major highlights of the audited report and accounts of CCNN for the year ended December 31, 2015 showed that the company recorded pre and post-tax profits of N1.55 billion and N1.20 billion during the year, while gross profit stood at N3.96 billion.

The company improved its intrinsic value during the year with net assets per share rising by seven per cent from N7.52 in 2014 to N8.07 in 2015. Total assets also rose by nine per cent from N15.78 billion to N17.15 billion. Non-current assets had grown by 21 per cent from N8.37 billion to N10.12 billion. Shareholders’ funds also improved by seven per cent from N9.45 billion in 2014 to N10.14 billion in 2015.

The Board of Directors has recommended distribution of a total of N125.7 million to shareholders as cash dividends for the 2015 business year, representing a dividend per share of 10 kobo.

Commenting on the results, the managing director, CCNN, Malam Ibrahim Aminu, said the company’s performance in 2015 showed steadiness and resilience, when viewed against the background of macroeconomic challenges especially in the areas of energy supply and foreign exchange.

An indigenous conglomerate, the BUA Group, has resumed discussions with a Chinese firm, Sinoma International Engineering Company, on plans to construct a steel plant in Nigeria and two cement factories in East Africa.

The Chairman, BUA Group, Abdulsamad Rabiu, stated this on Thursday and gave the total cost of the projects as $1.9bn (about N374bn at the official exchange rate of N197 to the dollar).

Sinoma, which is said to be the only enterprise that possesses the core technology and a complete innovation system in the non-metallic material industry in China, had last year reportedly signed a $4.34bn deal with the Dangote Group to build various cement plants across Africa.

A report by Reuters indicated that each of the BUA steel plant, with capacity for 1.2 million tonnes, would cost $1.2bn, while the two cement plants, which would have an annual capacity of three million tonnes, would cost $700m.

Although the report stated that the steel plants would be located in Nigeria, the specific locations and when they would be completed.

Our correspondent learnt that the talks on the two cement plants commenced last year.

Rabiu was quoted as saying in September last year that BUA had signed $600m worth of contracts with Sinoma International to double its cement production capacity and expand its market share in Nigeria.

The BUA Group is said to have invested $500m in a three metric tonnes per annum capacity Greenfield cement plant in Okpella, Edo State. The Obu cement plant, which was inaugurated last year, took BUA’s cement capacity to 5.3 metric tonne yearly.

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BUA divests from its Flour Milling business in US$275million deal

BUA Group, one of Nigeria’s largest foods and infrastructure conglomerates has announced the divestment of its flour business to Olam International in a deal worth USD275million.

Speaking at the signing ceremony over the weekend, billionaire industrialist and Founder, BUA Group, Abdulsamad Rabiu said, “This signing marks a major milestone in our medium term strategy. Over the years, we have run one of the largest and most efficient flour milling businesses in Nigeria and are confident in the value it will add to the buyer’s operations. Our Group’s strategic focus will now be to diversify to business areas with greater potential for export where the sourcing and utilisation of foreign exchange is less and most of the materials needed for production can be sourced locally whilst also positioning our current line of Foods and Infrastructure businesses for market leadership.”

Further speaking on the Group’s medium term growth strategy, Alhaji Rabiu who is also the Executive Chairman of BUA, said that expanding the backward integration of its sugar plantations in Kwara and Kogi Sates is key. “Extensive work is ongoing in Lafiagi, Kwara state with over 20,000 hectares and we have another 50,000 hectares of farmland in Bassa, Kogi. These two operations form the fulcrum of our backward integration programme for Sugar and this will further reduce the country’s dependence on imported raw sugar while supporting the value chain in sugar production within Nigeria.”

“Similarly, we expect to replicate the successes we have recorded through the deep integration of our cement operations. With most raw materials for cement currently being sourced locally, we have been able to scale up operations significantly with minimal dependence on foreign exchange and will soon start exporting to neighboring countries from both our Obu and Sokoto plants which are currently undergoing 3.5million MTPA and 1.5million MTPA capacity expansions respectively to bring the Group’s cement production capacity to around 10million MTPA by 2018,” he added.

Abdulsamad also believes that with global prices of crude oil coming down and demand for foreign exchange going up, these projects will help create badly needed jobs in Nigeria, diversify BUA’s business further, and stimulate the Nigerian economy as well as support the government’s roadmaps for agriculture and extractive industries

In his comments, Olam’s Managing Director/CEO for Grains, K. C. Suresh said that the deal will significantly boost Olam’s flour and wheat milling operations in Nigeria to meet consumer needs as well as consolidate its position as a market leader in the Foods industry in Nigeria. He was confident that BUA’s flour milling business offered great value for money.

Olam International is a leading agri-business operating across the value chain in 65 countries, supplying various products across 16 platforms to over 13,800 customers worldwide. From a direct sourcing and processing presence in most major producing countries, Olam has built a global leadership position in many of its businesses. Headquartered in Singapore and listed on the SGX-ST on February 11, 2005, Olam currently ranks among the top 50 largest listed companies in Singapore in terms of market capitalization.

Established in 1988 by billionaire industrialist, Abdulsamad Rabiu, BUA Group is a leading Food and Infrastructure conglomerate in Nigeria with business interests spanning sugar, rice, cement, real estate, logistics and port operations.

www.buagroup.com

Kudos for CCNN

Shareholders have passed a vote of confidence on the board and management of the Cement Company of Northern Nigeria (CCNN) Plc for improving the fortunes of the company in the last one year.

The shareholders spoke on the sidelines of the company’s 36th Annual General Meeting in Abuja.

Speaking on behalf of a shareholder group, Shehu Mallam Mikail, National President, Constance Shareholders’ Association of Nigeria, expressed satisfaction with the track record of the company, saying it has continued to deliver shareholders’ value.

According to him, “The sterling performance of the company was made possible because the Board and Management are being transparent in their reports and also comply with all the necessary rules that govern all the quoted companies in Nigeria.”

Besides, he said the company was able to declare substantial dividends in spite of the poor state of infrastructure, among others.

“With a proactive approach of the Board/Management which prompted the company to make an alternative measure in maintaining a stable production line by using Biomass as a supplementary Kiln fuel through which it as able to reduce the cost of energy. And the company is really abiding to the company mission of producing and marketing high quality cement for national development.”

Judging by the modest success achieved by the company, the shareholders said they would continue to throw their weight behind the board.

“Shareholders would surely support companies that put smiles on their faces when dividends are being declared,”Afolabi Bankole, a shareholder said.

“We are happy with the performance of the company thus far and that is why we have promised to continuously support all the resolutions passed by the Board/Management because it shows they know how to carry along all the stakeholders, including minority or majority shareholders of the company.”

They however stressed the need for the company need to raise more funds so as to able to complete the coal line project as expected to be completed by 2017.

CCNN posted a profit after tax of N1.9 billion in the financial year ended December 31, 2014, indicating an increase of 23 per cent over the N1.56 billion recorded in the corresponding period of 2013.

From a high of N2.77 billion in 2013, CCNN Plc’s production and operational expenses significantly declined to N2.40 billion in 2014. Shareholders were also apprised of the developments the company took in the financial year, including CCNN Plc’s proposed N48billion cement plant expansion, which will modernise production facilities and raise the company’s output to 2.0 million metric tonnes of cement annually.

Emir of Lafiagi confers traditional title on Rabiu

The inter-ministerial National Sugar Roadmap Implementation Committee (SURMIC) of the federal government has commended the management of BUA Group for its recent investments in its Lafiagi Sugar Company, and encouraged the company to sustain the pace of ongoing work at the plantation. This was revealed when the SURMIC paid a monitoring visit to the Lafiagi plantation on December 7, 2015.

The SURMIC visit, which had the Directors of Technical and Planning at the National Sugar Development Council, the Manufacturer’s Association of Nigeria (MAN), the Ministry of Agriculture, Ministry of Power as well as other high-level stakeholders in the sugar industry included a tour of BUA Group’s Lafiagi Sugar Plantation as well as an inspection of equipment and ongoing work, was carried out to ensure compliance with the government’s backward implementation policy.

Speaking during the visit, Director Technical at the Sugar Council, Mr. Muhammed Jika, commended the pace of ongoing work at the Lafiagi Sugar Company as well as the investments in infrastructure on ground. “We are satisfied with what we have seen on ground. While the ongoing work is commendable, we expect BUA to sustain the current pace of work at Lafiagi into the future so that Nigerians can start to benefit fully from the backward implementation policy of the federal government,” Jika said.

In his response, Isiaku Samuel, a General Manager at Lafiagi Sugar Company, said despite the challenges faced in taking full ownership of the site after BUA purchased the company through a privatisation exercise, BUA has gone ahead to mobilise manpower and equipment to kick start the once-moribund facility in addition to acquiring an additional 50,000 hectares in Bassa Local Government area of Kogi State for sugarcane farming. “We are happy with this visit by the National Sugar Roadmap Implementation Committee (SURMIC) to verify ongoing work at our facility. While we have made considerable efforts in developing a sugarcane nursery and land development activities for the next planting season, we have also deployed additional manpower and equipment to fast-track the development of the plantation. We have also ensured that the Sugar Council and other relevant stakeholders have been carried along in this process,” he said.

Meanwhile, the Emir of Lafiagi, Alhaji Sa’adu Kawu Haliru, commended the management of BUA Group for its sincere efforts in ensuring the resuscitation of the Lafiagi Sugar Company. This was made known during the occasion of his 40th anniversary on the throne where he also conferred a traditional title of ‘Zannan Lafiagi’ on the Executive Chairman of BUA Group, Abdulsamad Rabiu. Established in 1988 by billionaire industrialist, Abdulsamad Rabiu, BUA Group has grown to become one of Nigeria’s largest industrial conglomerates with significant investments in Foods & Infrastructure ranging from Sugar, flour, rice, cement, steel and real estate to port operations. Lafiagi Sugar Company is a subsidiary of the BUA Group and was acquired by the group through a successful privatisation exercise of the federal government.

Lagos — In response to the demands of its protesting staff, the management of BUA Flour and Pasta, subsidiaries of BUA Group has made provisions to pay affected staff entitlements fully in line with the company’s policy.

According to a statement by the Group Head, Corporate Communications, Mr. O’tega Ogra, the decision to pay off the staff of the two subsidiaries was based on their request that they be paid off either in the event of a divestment or not.

Some staff of the two subsidiaries had on December 1 and 9, 2015 staged a protest at the group’s head office in Victoria Island, Lagos with the claim that the flour arm of the group’s business has been sold off and feared that they would be laid off without their entitlements being paid.

BUA Group, in response to the employees protest, denied the sale of the subsidiaries.

The statement said, “There was a protest at our head office by employees of our Pasta and Flour subsidiaries due to apprehension over an alleged sale of our flour and pasta milling businesses. As a thriving business that has consistently bucked the performance trend positively in the Flour and Pasta business in Nigeria, BUA receives serious unsolicited expressions of Interest from various companies across the world on its various businesses.”

Demand for cement will be driven by building of infrastructure and housing development, Executive Director, BUA Group, Kabiru Rabiu has said.

He said the firm’s target is to increase its capacity to 10 million metric tonnes per year by 2018.

He said the company acquired a controlling stake at the Cement Company of Northern Nigeria Plc, as well as Edo Cement.This is in addition to being one of the 13 companies given licences to bring in bulk cement into the local market.

On how the plant is powered, he said the company established 30 kilometres of gas pipeline to power their cement plant in Edo State.

He predicted that cement price will remain stable in the short term and gradually drop in the medium term.

Speaking at an investor conference, Rabiu said though BUA started as a trading company, importing rice, cement and flour, it later turned to a major integrated manufacturer of these products locally thereby creating thousands of jobs for in the country.

“The company started as a trading entity importing rice, edible oil, cement as well as flour into the Nigerian market. Over the years, it began the production of what it previously imported like edible oil as well as rice and flour milling,” he said.

He said by 2005, the firm established its first flour mill in Lagos, followed by another in Kano with 5.5 million tonnes milling capacity per day.

Also, in 2008, BUA Group set up the second-largest sugar refinery in sub-Saharan Africa, which is situated in Lagos with installed capacity of 720,000 metric tones, he added.

“At the moment, companies within the group are separate entities within different divisions. We have the Infrastructure division and then we have the foods division. In the infrastructure segment, we have cement, real estate, steel and port operations,” Rabiu said.

He explained that massive infrastructure projects, commercial and residential housing development will drive cement demand in Nigeria. The BUA boss said he learnt from informed sources that President Muhammdu Buhari’s administration planned to spend about $20 billion starting from next year on infrastructure.

Shareholders have passed a vote of confidence on the board and management of the Cement Company of Northern Nigeria (CCNN) Plc for improving the fortunes of the company in the last one year.

The shareholders spoke on the sidelines of the company’s 36th Annual General Meeting in Abuja.

Speaking on behalf of a shareholder group, Shehu Mallam Mikail, National President, Constance Shareholders’ Association of Nigeria, expressed satisfaction with the track record of the company, saying it has continued to deliver shareholders’ value.

According to him, “The sterling performance of the company was made possible because the Board and Management are being transparent in their reports and also comply with all the necessary rules that govern all the quoted companies in Nigeria.”

Besides, he said the company was able to declare substantial dividends in spite of the poor state of infrastructure, among others.

“With a proactive approach of the Board/Management which prompted the company to make an alternative measure in maintaining a stable production line by using Biomass as a supplementary Kiln fuel through which it as able to reduce the cost of energy. And the company is really abiding to the company mission of producing and marketing high quality cement for national development.”

Judging by the modest success achieved by the company, the shareholders said they would continue to throw their weight behind the board.

“Shareholders would surely support companies that put smiles on their faces when dividends are being declared,”Afolabi Bankole, a shareholder said.

“We are happy with the performance of the company thus far and that is why we have promised to continuously support all the resolutions passed by the Board/Management because it shows they know how to carry along all the stakeholders, including minority or majority shareholders of the company.”

They however stressed the need for the company need to raise more funds so as to able to complete the coal line project as expected to be completed by 2017.

CCNN posted a profit after tax of N1.9 billion in the financial year ended December 31, 2014, indicating an increase of 23 per cent over the N1.56 billion recorded in the corresponding period of 2013.

From a high of N2.77 billion in 2013, CCNN Plc’s production and operational expenses significantly declined to N2.40 billion in 2014. Shareholders were also apprised of the developments the company took in the financial year, including CCNN Plc’s proposed N48billion cement plant expansion, which will modernise production facilities and raise the company’s output to 2.0 million metric tonnes of cement annually.

MEDIA ENQUIRIES

O’tega OGRA
Group Head, Corporate Communications | This email address is being protected from spambots. You need JavaScript enabled to view it.

Beijing, China – With the successful start of production at its new Obu Cement Plant, BUA Group is set to further double the capacity of the plant as it has signed a USD600million contract with China’s leading Cement manufacturing supplier, SINOMA CBMI to commence the construction of a second production line. This landmark agreement which was signed at the SINOMA CBMI offices in China will further bolster BUA Group’s share of the cement market in Nigeria to over 20% market share by the time the expansion is completed.

Speaking at the signing ceremony which held at the SINOMA CBMI Headquarters in China, Abdulsamad Rabiu, Executive Chairman of BUA Group said that the new line was part of the Group’s organic growth strategy for its cement arm, BUA Cement. “Given their proven track record and vast expertise in deploying cement plants across the world, we are confident in SINOMA’s ability to deliver a world-class second line for our Obu Cement Plant as well as meet our stringent environmental, safety, quality and technical requirements for our plants and products.

This additional capacity forms part of our strategic growth programme for our Cement arm, BUA Cement. In the long term, we expect to commit significant investments in cement production across the continent whilst also ensuring that the quality of our products remain a key differentiating factor in the marketplace.”

Tong Laigou, Board Chairman of SINOMA CBMI said, "We are happy to sign this contract and extend our ongoing partnership with BUA Cement. This signing follows an earlier project to install an additional 1.5mtpa capacity to Sokoto Cement – also subsidiary of BUA Cement, which is expected to be completed soon and commissioned in 2016. We intend to bring our wealth of experience and expertise to bear in bringing this project to fruition.”

SINOMA CBMI has successfully completed hundreds of key projects for cement production lines in China and across the world, including almost all foreign-funded projects in China, with total number of cement production lines exceeding 150. Amongst its numerous achievements, CBMI was responsible for constructing the world’s largest cement plant consisting of two 10,000 t/d cement production lines.

BUA Group is one of Nigeria’s largest Foods and Infrastructure conglomerates with significant investments in various sectors of the economy including Cement, Sugar, Steel, Flour & Pasta, Edible Oils, Housing, and Port Operations. It’s cement arm, BUA Cement, currently operates factories in Obu and Okpella, Edo State Nigeria and also in Sokoto through its majority shareholding in CCNN.

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O’tega OGRA
Group Head, Corporate Communications | This email address is being protected from spambots. You need JavaScript enabled to view it.

Abuja – An indigenous company, BUA Group, has embarked on the building of a $500 million cement plant at Okpella community in Edo.

The plant, when completed, would produce 2.5 million tonnes of cement annually.

The Executive Chairman of BUA Group, AlhajiAbdulsamadRabiu, announced at the contract signing ceremony for the building of the plant on Tuesday in Abuja that the building of the “Edo Cement Plant’’ would be completed in August, 2013.

“The building of the Edo Cement will take 28 months to be completed and it is expected to offer jobs to 4,000 skilled workers and over 20,000 indirect jobs to Nigerians,’’ Rabiu stated.

He explained that the management of BUA Group settled for a Danish company known as FLSmidth to build the plant, saying that the establishment of the facility was to assist the country to attain self-sufficiency in cement production.

The industrialist said that the company expected that the plant would generate mass employment for teeming Nigerians.

It was learnt that the financing of the project is to be provided by FLSmidth and a consortium of banks led by EcoBank, which has since provided an initial 50 million dollars for the take-off of the plant’s construction.Other banks in the consortium are First Bank, Diamond Bank, Fin Bank and Bank PHB.

The President of the Cement Manufacturing Association of Nigeria, Mr Joseph Makoju, lauded the management of BUA Group for the investment, saying that the plant would contribute significantly to the quest of the Federal Government to make Nigeria a cement-exporting nation.

He lauded the government for its back-integration policy in the cement sector, saying that the policy would assist in the effort to reduce the high cost of cement and other building materials in the country. Makoju expressed delight at the involvement of the Danish firm to build the plant, recalling that the company had been involved in the building of many thriving cement plants in Nigeria.

The Vice President of FLSmidth, Mr Per MejnertKristensen, gave an assurance that his company would complete the building of the plant on schedule while commending the Federal Government for providing the atmosphere for foreign direct investment.

He said that his firm had been involved in the building of many cement plants in Nigeria, assuring that the company would build a facility Nigerians would be proud of.

The price of cement has continued to rise in the country, making it difficult for many Nigerians to own their own houses. (NAN).

BUA Sugar Refinery Company has announced plans to build a sugar refinery in Kogi State, to boost sugar production in Nigeria.

According to a statement by the company, the Kogi State Governor, Mr.Idris Wada, had allocated land to the company for the establishment of the sugar refinery.

Mr.KabiruRabiu, Group Executive Director, BUA Sugar Refinery, said it had earlier requested a piece of land from the Governor for the establishment of a sugar industry in Bassa Local Government Area in the State.

The governor confirmed the award of the land to the company when officials of the company paid him a courtesy visit in his office in Lokoja.

Wada said the land was allocated for the establishment of the Sugar factory because agriculture is one of the state’s priorities.

He maintained that the state is blessed with abundant resources, calling on investors to take the advantage of the enabling environment provided by his administration to develop the state.

BUA Sugar currently has an ultra-modern 2,000 metric tonne Sugar refinery Plant at Tin Can Port Industrial Estate, Lagos and it also acquired Lafiagi Sugar Plant in Kwara State, a couple of months ago.

The company said that apart from manufacturing and local distribution of sugar, it is set to benefit from the international sugar market.

The company said its existing refinery was conceived as an ultra-modern, automated plant with state of the art equipment, adding that the technology deployed is unique and from Brazil, widely known as having the best technology in sugar production and refinery.

It further stated that the refinery is structured to generate its own power during the process of converting molasses to sugar, noting, however, that provision has also been made for gas supply from a gas company to fire its turbines.

The company had noted that the refinery, which is 100 per cent Nigerian owned and 100 per cent equity financed, might in the near future consider increasing its ownership structure, with the listing of its shares on the Nigerian Stock Exchange, NSE.

According to the company, the plan to list the shares is borne out of its decision to extend ownership of the company to a vast majority of Nigerians, adding that the listing processes would commence after holding talks with the relevant capital market authorities.

BUA Group, one of Africa’s leading conglomerates, Saturday signed shirt sponsorship with Kano Pillars Football Club in Kano.

Established about 25 years ago by Alhaji Abdulsamad Rabiu as a commodity trading outfit, BUA Group has grown over the years to become one of Africa’s leading conglomerates with interests in sugar refining, cement manufacturing, flour milling, real estates development among others.

Kano State Commissioner of Information, Internal Affairs, Sports and Youth Development, Professor Farouk Umar Jubril, who signed on behalf of Kano Pillars FC, expressed delight over the sponsorship deal.

“We are very happy with this partnership as the State Government encourages Kano Pillars to be financially self-sufficient,” he said.

The commissioner then thanked the BUA Group for the partnership, adding: “that is why BUA has a very strong brand in the market place.”

Kabiru Rabiu, Group Executive Director of BUA Group, who signed for the Group said: “We are very excited to form this partnership with Kano Pillars, the biggest football club in Nigeria in terms of number of fans. Our aim is to encourage local based club sides as we focus on our business plan and strategy of developing significant commercial partnerships.”

He added: “I must also commend the Governor of Kano State, His Excellency, Eng. Dr. Rabiu Musa Kwankwanso for his unflinching support to the team in particular and overwhelming youth and human capital development in general.”

The General Manager of the club, Abba Galadima said: "On behalf of everyone at Kano Pillars, I am delighted to welcome BUA as the club's new shirt sponsor. This is a good development for the game in Nigeria.

I'm proud of what BUA has done with the local league. It shows there are still corporate bodies that are willing to identify with us. The desire of a brand like BUA to support the club is a measure of how much positivity there is for Kano Pillars in the next season. I look forward to a long and successful partnership with BUA and I'm sure every Kano Pillars supporters will welcome their support."

Kano Pillars is currently Nigerian Premier League champions. shows there are still corporate bodies that are willing to identify with us. The desire of a brand like BUA to support the club is a measure of how much positivity there is for Kano Pillars in the next season.”

He added, “I must also commend Kano State Governor, RabiuKwankwanso, for his support to the team in particular and overwhelming youth and human capital development in general.”

The General Manager of the club, Abba Galadima, said: “On behalf of everyone at Kano Pillars, I am delighted to welcome BUA as the club’s new shirt sponsor. This is a good development for the game in Nigeria.

I’m proud of what BUA has done with the local League. It shows there are still corporate bodies that are willing to identify with us. The desire of a brand like BUA to support the club is a measure of how much positivity there is for Kano Pillars in the next season.

BUA Sugar refinery, has unveiled plans to ensure effective implementation of federal government policy on backward integration on sugar.Chimaobi Madukwe, Chief Operating Officer for BUA Group while speaking to journalists in Lagos noted that the recent ministers’ visit to BUA Group is an indication of government’s enormous support for industrial groups in Nigeria, through the National Sugar Development Council (NSDC) and other relevant agencies.

BUA Sugar Refinery is currently operating on a plant capacity utilization level of 95 percent and is working towards achieving a 100 percent capacity.

BUA Sugar Refinery started operations in September, 2008 and has an installed capacity of 720,000 metric tons per annum, using centralised process control automation which is the latest in sugar technology. A second sugar refinery with the same installed capacity is set to be commissioned in Port-Harcourt, Rivers State next year.

As part of strategic plans to reduce the importation of raw sugar and ensure the effective implementation of the Federal Government Policy on Backward Integration, Lafiagi Sugar Company in Kwara was acquired by BUA in the year 2008 through the Federal Government Privatization exercise.

The purpose of this acquisition is to establish a standard vacuum pan factory and 50,000 hectares of sugarcane plantation. The project is to process 5,000,000 tons of cane during a 166 day grinding season to produce 500,000 metric tons of refined sugar annually.

However, the development will be such that can be expandable from the 6th year to produce 1,000,000 metric tons of sugar annually. The related infrastructure required is also to be established. “We recently launched another backward integration scheme with the acquisition of 100,000 hectares of land in Kogi State for the commencement of another sugarcane plantation before the end of the year,” Madukwe said.

This will process 10,000,000 tons of cane to produce 1,000,000 metric tons of refined sugar annually. This second plantation will assist in further boosting the sugar production of the Group and enhance employment, and open up opportunities for ancillary industries.

The Governor of Kogi State, Idris Wada, recently confirmed the allocation of land to BUA for the setting up of the proposed plantation.

“We are pleased with the support of Governor in assisting us towards establishing the sugar plantation in Kogi State. We promise to support the government and the people of the State, and to be loyal and socially responsible corporate citizens,” Madukwe said. http://businessdayonline.com/2013/08/bua-to-implement-backward-integration-policy-on-sugar/#.VaaLh_lViko

The Federal Government has commenced the implementation of the Backward Integration Policy (BIP) in the sugar industry with the official signing off on the BIP plans and projects by three major sugar refineries in Nigeria.

The event, which was chaired by the Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, was attended by representatives of Dangote Sugar Refinery, BUA Group, Golden Sugar Refinery, the Ministries of Health, National Planning and the Nigerian Customs Service, among others.

The Federal Executive Council(FEC) had on October 19, 2012, approved the Nigerian National Sugar Masterplan.

The NSMP is expected to generate about 170,000 new jobs across the country, ensure self-sufficiency in sugar production, and conserve about $350million annually in foreign exchange.

According to the plan, the sugar industry is also expected to produce about 1,797,000 tonnes of the commodity annually, while about 161.2 million litres of ethanol to be produced will generate 400 megawatts (MW) of electricity, among others.

Speaking during the signing off ceremony in Abuja, Aganga said the event marked the beginning of the nation’s journey towards sound industrialisation, in line with the Nigerian Industrial Revolution Plan.

He said: “Today marks the historic beginning of the journey towards our nation’s industrial revolution, which is based on the areas where we have competitive and comparative advantage.

"Today is the demonstration that the implementation of the Backward Integration Policy in the Sugar industry, which is a critical part of National Sugar Master Plan, has started.”

The minister, who commended the sugar refiners for keying into the new Sugar Master Plan, said the federal government was committed to implementing the policy in a fair, transparent and mutually beneficial manner.

He said: “I am particularly delighted that since the new sugar policy was announced, we have been encouraged by the commitment of sugar refiners towards supporting the implementation of the policy. For instance, the President of Dangote Group, Aliko Dangote, has made some pronouncements on the company's intention to invest about $2billion to produce about 1.5million metric tonnes of sugar.

"Currently, they are discussing with Adamawa, Kogi, Kebbi, Sokoto and Taraba. If this is successfully implemented, you will be amazed by the level of economic transformation that will take place in these states. Similarly, Golden Sugar Refinery plans to produce about 30 metric tons of sugar from about 13, 500 hectares of land in Niger state with an investment of close to N50bn.

He added: "I want to commend the sugar refiners – Dangote Group, BUA Group and the Golden Sugar Refinery – that have shown commitment to this country by supporting the Backward Integration Policy. Each one of them have prepared their Backward Integration Plans which I know was not easy to do but they have done it as a way of demonstrating their commitment.

"Apart from the refiners, the farmers and out-growers are all part of the value chain. Our job is to make sure that the policy is rigorously implemented in a fair manner to all the parties involved.”

According to Aganga, an inter-ministerial committee will be set up to monitor the implementation of the policy.

He said: “The policy is not about the Sugar Council and the Ministry of Industry Trade and Investment. We have an inter-ministerial group involved in the implementation of the Sugar Master Plan. Just as we did with the implementation of the BIP in the cement industry, we will also have industry participants as part of the committee for the implementation team that will monitor the gap between what we are producing and what the demand is in the country so that when we make the allocations.

“The allocation will take into consideration the strong evidence that the refiners are committed to the BIP. This means that they must have their farms and must be working together with the farmers to produce sugar cane. We will look at these things rigorously in the implementation of the new sugar policy because that is the key driver to the success of the policy."

In his remarks, the representative of Dangote Group, Mr. Joseph Makoju, said, on behalf of the companies, that the refiners would work with the Federal Government to ensure the successful implementation of the policy.

He said: “We want to commend the minister for his relentless efforts towards making Nigeria the preferred investment destination in Africa and globally. We are happy with the minister’s passion and commitment for supporting local production as against importation.

"The BIP in the sugar industry will move Nigeria away from the era of importing bulk of raw sugar to that of producing sugar locally.”

He said: “I am particularly delighted that since the new sugar policy was announced, we have been encouraged by the commitment of sugar refiners towards supporting the implementation of the policy. For instance, the President of Dangote Group, Aliko Dangote, has made some pronouncements on the company's intention to invest about $2billion to produce about 1.5million metric tonnes of sugar.

"Currently, they are discussing with Adamawa, Kogi, Kebbi, Sokoto and Taraba. If this is successfully implemented, you will be amazed by the level of economic transformation that will take place in these states. Similarly, Golden Sugar Refinery plans to produce about 30 metric tons of sugar from about 13, 500 hectares of land in Niger state with an investment of close to N50bn.

He added: "I want to commend the sugar refiners – Dangote Group, BUA Group and the Golden Sugar Refinery – that have shown commitment to this country by supporting the Backward Integration Policy. Each one of them have prepared their Backward Integration Plans which I know was not easy to do but they have done it as a way of demonstrating their commitment.

"Apart from the refiners, the farmers and out-growers are all part of the value chain. Our job is to make sure that the policy is rigorously implemented in a fair manner to all the parties involved.”

According to Aganga, an inter-ministerial committee will be set up to monitor the implementation of the policy.

He said: “The policy is not about the Sugar Council and the Ministry of Industry Trade and Investment. We have an inter-ministerial group involved in the implementation of the Sugar Master Plan. Just as we did with the implementation of the BIP in the cement industry, we will also have industry participants as part of the committee for the implementation team that will monitor the gap between what we are producing and what the demand is in the country so that when we make the allocations.

“The allocation will take into consideration the strong evidence that the refiners are committed to the BIP. This means that they must have their farms and must be working together with the farmers to produce sugar cane. We will look at these things rigorously in the implementation of the new sugar policy because that is the key driver to the success of the policy."

In his remarks, the representative of Dangote Group, Mr. Joseph Makoju, said, on behalf of the companies, that the refiners would work with the Federal Government to ensure the successful implementation of the policy.

He said: “We want to commend the minister for his relentless efforts towards making Nigeria the preferred investment destination in Africa and globally. We are happy with the minister’s passion and commitment for supporting local production as against importation.

"The BIP in the sugar industry will move Nigeria away from the era of importing bulk of raw sugar to that of producing sugar locally.”

http://www.thisdaylive.com/articles/fg-begins-backward-integration-policy-in-sugar-industry/152357/

BUA Group on Tuesday acquired the Sokoto Cement Company, CCNN and Edo Cement Company located in Okpella in Etsako East local government of Edo State at N15 billion.

The deal, many industry analysts believe, is a significant milestone and the final affirmation of BUA as a major player in the league of cement manufacturers in the country.

The acquisition gives BUA 50.7 percent majority stake in Sokoto Cement - CCNN, which has an installed capacity of 500,000 tonnes and 87 percent equity control of Okpella cement company with an installed capacity of 350,000 tonnes.

For Okpella cement, BUA has unfolded a 300 million dollar, plan to upgrade and modernise its production processes by installing another 2 million tonnes capacity line before the end of 2011 which will bring the total production capacity of the company to 2.350 million tonnes per annum from the current 350,000 tonnes.

The Chairman and Chief Executive Officer of BUA Group, AbdulsamadRabiu was delighted at the consummation of the deal. He stated that the acquisition is an exciting opportunity in the sense that it has launched BUA firmly into the cement manufacturing business in the country.

“This is something we always wanted to do. And for two years we have been struggling to get a mining license which is a requirement to build a cement factory. For us, this is God-sent. We are now going ahead fully to expand Okpella by putting a 2 million tonnes line in there between now and end of 2011. We will completely revitalize the place, in the process, creating employment opportunities while ensuring that cement is made available to the average Nigerian at affordable prices”.

He revealed that his company was in a unique position to meet its target because a lot of companies all over the world that had earlier ordered for plants have had to cancel because of the economic meltdown and the inability of some of them to raise the required financing.”

Before the meltdown, manufacturers were using 3-4 years to deliver on orders for cement equipments, but with the cancellations of prior orders, it is now possible to deliver the equipment for the new lines on time. “We are in good financial position to ensure that,” he stated.

Even though company officials have kept tight lips on the cost of the transaction, competent sources close to the negotiations put the cost of both companies at a princely 100 million dollars which translates to N15 billion. This is premised on about 700million shares at the current market price of N10/share for 50.7 per cent of CCNN giving N7billion and the balance going for Okpella Cement Company. It is however not certain if a premium was paid for the companies.

BUA International, it will be recalled was one of the six companies licensed by the Federal Government last year to bring into the country bulk cement which is then re-bagged for sale. The move was to stem the rising cost of cement which had peaked at N2, 000.00 per 50km bag.

To achieve that objective, the company immediately purchased a 40 million dollar floating terminal called BUA Cement 1. The company is also currently engaged in various construction and expansion initiatives aimed at consolidating its foothold in the cement industry.

The acquisitions are coming exactly one year after BUA Cement 1 floating terminal was launched into the Nigerian market.

BUA is currently into the production of sugar and flour with factories located in Apapa & Kano. The BUA Sugar Refinery, which is only the second of its kind in West Africa has an installed capacity of 720,000metric tonnes per annum and is presently producing at 85 per cent of installed capacity. The two flour mills are located in Apapa and Kano. http://www.nigerianbestforum.com/generaltopics/bua-acquires-sokoto-okpella-cement-companies/

BUA Sugar Refinery, a subsidiary of BUA Group over the weekend was awarded the Mandatory Conformity Assessment Programme (MANCAP) award for Quality by Standards Organization of Nigeria-(SON), a statement from BUA has said.

The MD of BUA Sugar, Mr Godwin Isibor while receiving the award said the award was a recognition of the consistent quality of BUA Sugar.

BUA International Limited, the parent company was set up over 20 years ago, as a Private Limited Liability Company to undertake the importation and marketing of iron & steel, agricultural, industrial chemicals and other manufacturing activities. Today, the areas of business interests span from manufacturing of sugar, cement, flour milling, oil milling, port concession, real estate development, oil & gas and shipping.

The award ceremony was the climax of the Nigerian Quality Fair 2009 which started with a Walk for the Standards on Thursday and an exhibition on Friday.

The award which attracted high profile personalities in both the private and public sectors had in attendance the Minister of State for Commerce and Industry, Mr HumpreyAbah

http://sunday.dailytrust.com.ng/sunday/index.php/business/589-bua-sugar-wins-mancap-award