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Tag: BUA

  • Kwara hails BUA Sugar’s $300m investment

    Kwara hails BUA Sugar’s $300m investment

    • 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.”

  • ‘BUA had challenges with host communities’

    The Bureau of Public Enterprises (BPE) yesterday confirmed that Bua Group Sugar Estate in Lafiagi, Kwara State had initial problem with host communities on land disputes.

    Its Head, Public Communications, Mr. Alex Okoh, made this disclosure why responding to a report in one of the national dailies about the company’s claim of having its own privatization challenges were part of the setback that affected its smooth take-off.

    He however said the BPE Post Privatization Monitoring Unit was reviewing the company’s performance and ensuring the implementation of its business plan, despite the initial problem.

    Okoh said that the new owners that took over the company  in 2014, have gone beyond ground preparation to purchase some equipment.

  • Infrastructure, housing to drive cement demand, says BUA chief

    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.

  • BUA is ‘Cement Brand of the Year’

    BUA is ‘Cement Brand of the Year’

    BUA Cement was at the weekend named the “Cement Brand of the Year 2015” at this year’s Marketing World Awards in Lagos at the weekend.

    The company defeated other major manufacturers including Lafarge and Dangote Cement to clinch the award. BUA Cement, a wholly owned subsidiary of BUA Group, is led by its Executive Chairman, Abdulsamad Rabiu.

    According to Instinct Media, organisers of the awards, the company won based on its consistency in delivering superior product offerings as well as setting the pace for cement manufacturing in the country.

    The company, the organisers said, has also shown a very strong brand equity and leadership in its key markets and achieved a high perception of quality amongst users of cement in Nigeria.

    Receiving the award on behalf of the company, its Group Head, Corporate Communications, O’tega Ogra, thanked the organisers for the award assuring that BUA Cement will continue to push the boundaries of innovation in its processes and products offerings in the interest of customers.

    ”To further entrench our place as a leading manufacturer, make cement more accessible as well as bring about a sustainable and fairer pricing regime, we are currently expanding our cement lines in Northern and Southern Nigeria by adding about  five million metric tonnes to our production capacity within the next two years,” he said.

     

     

  • BUA Group chairman praises govt on resuscitation of refineries

    BUA Group chairman praises govt on resuscitation of refineries

    Chairman of BUA Group Abdulsamad Rabiu has commended the Federal Government on the resuscitation of local refineries and reduced price of Low Pour Fuel Oil (LPFO) from N77.94 per litre to N51.38 per litre.

    Rabiu, who is also the Chairman of the Cement Company of Northern Nigeria, said the improvement in the refineries operations has led to increased supply of LPFO to its Sokoto Cement plant.

    He said CCNN, the makers of Sokoto Cement, is the only operating cement plant in the whole of North-West Nigeria and the single largest employer of labour in Sokoto state. However, the company’s effort have been slowed down over the years due to infrastructural challenges including erratic supply of fuel oil to the plant.

    “With the recent appointment of the new Group Managing Director for Nigeria National Pertroleum Corporation by the President Muhammadu Buhari-led government, we are however beginning to see the impact of improved production at the refineries.

    “Last year, CCNN spent about N7billion on fuel oil alone. However, this welcome development will bring about improved, cost-effective production and efficient capacity utilisation at Sokoto Cement which should further engender a sustainable pricing regime that will make cement more affordable in the North Western region in the medium term.”

    Rabiu further added that the moves of the current administration to ensure optimal operations at the Nation’s refineries will rejuvenate moribund industries. “For instance, access to cheaper fuels associated with increased production at the refineries is already stimulating the rejuvenation of key industries including textiles and manufacturing in the North. I believe this effect will be replicated across the nation where certain industries are dependent on the refineries as their primary sources of fuel,” Rabiu said.

    On the new line being added by BUA Group in Sokoto, Rabiu commented that at $300million, the project is currently the single largest private investment in the North West region.

    He said BUA Cement was committed to ensuring the timely completion of the project in2016 which is expected to add an additional 1.5million tonnes per annum to CCNN’s current 500,000tpa capacity as part of the group’s Cement Strategy for Nigeria. Although, the additional line will come with Coal as the primary source of fuel, LPFO will still be used as a backup fuel at the plant.”To further consolidate our position as a major player, wewill continue to pursue our mid-term cement expansion strategy vigorously and are currently exploring opportunities for further expansion especially in Nigeria” added Rabiu.

    Abdulsamad also spoke on BUA Group’s social responsibility initiatives especially in CCNN’s primary area of operation in Sokoto State in which the company has invested immensely in various health, education, capacity development, employment generation and water supply project for its surrounding communities.

    “For us at BUA group, CSR is an integral part of our business, especially in areas where we operate. We are very conscious of responsible and sustainable business practices as it relates to environmental management, responsible sourcing, working conditions, education andhealth and, we do our best to ensure we work hand-in-hand with all stakeholders within the communities,” he said.

     

     

  • BUA, NGC sign gas deal

    BUA, NGC sign gas deal

    A cement manufacturing firm, BUA Cement, has signed a Gas Sales and Purchase Agreement (GSPA) with the Nigerian Gas Company (NGC) for its Edo Cement Company Limited.

    NGC Managing Director, Saidu Mohammed,who signed for his firm, said the agreement is for the supply of about 33 million standard cubic feet of gas daily (mmscf/d) by NGC to the plant in Okpella in Edo State.

    Group Executive Director, BUA Group, Kabiru Rabiu, who signed for BUA Cement, described the deal as an important milestone towards the commissioning of the new cement plant at the end of the year.

    Rabiu said $500 million has been spent on the plant ading that on completion, it will add about 15 per cent to the total cement output in the country.

    Nigeria produced about 21 million metric tons of cement in 2013 and with its population of 170 million people making the country one of the lowest per capita cement consumption in the world.

    BUA Group entered the cement sub sector in 2008 when the Federal Government of Nigeria issued out licenses to 13 companies, including BUA, to import cement in an effort to reduce the price of the product locally.

  • Fed Govt, BUA partner on backward integration

    Fed Govt, BUA partner on backward integration

    THE Federal Government has hinted of plans to partner with BUA Sugar Refinery Limited in order to achieve backward integration in sugar refinery in the country.

    The Minister of Industry, Trade and Investment, Dr. Olusegun Aganga made this disclosure during facility tour to BUA.

    While commending BUA Sugar Refinery Limited, for their increased investments and commitment towards making Nigeria self-sufficient in sugar production, Aganga said the government is ready to partner with the company towards promoting backward integration.

    He said BUA has been steadfast in their operations despite the harsh business terrain in the manufacturing sector of the economy, adding that the Federal Government is committed to supporting sugar production by providing the enabling environment in order to ensure economic growth and development.

    ‘‘BUA has done extremely well in terms of sugar refinery processing. It is a long and sophisticated process because I have visited these factories myself and have seen that it requires a lot of investments and equipment. Our intention is to work closely and to continue to provide the enabling environment to ensure economic growth and development but more importantly, job creation,” he said.

    He, however, urged BUA to continue to be committed to the backward integration policy, maintaining that the policy has the capacity of doubling job employment opportunities they currently offer to the teeming unemployed youths in the country.

    “This is why the Federal Government introduced the backward integration policy and for this to be successful, we all have to work together as partners, our job is to provide the enabling environment and policies for you to do well and yours is to work with us to achieve this,” he said.

    Chief Operating Officer for BUA Group, Mr. Chimaobi Madukwe, said the minister’s visit to BUA Group is an indication of government’s enormous support for industrial growth in the country, through the National Sugar Development Council (NSDC) and other relevant agencies.

    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 State was acquired by BUA in the year 2008 through the Federal Government Privatisation 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.

     

  • BUA to build sugar plantation in Kogi

    BUA Group plans to launch its backward integration scheme in its sugar subsidiary plantation in Kogi State before the end of the year.

    In a statement, the Group Executive Director, Kabiru Rabiu, said cultivation on the land will commence in the last quarter of the year.

    He added that the plantation will assist in boosting the sugar production of the Group and enhance employment, imports open up opportunities for ancillary industries.

    According to him, the plantation is structured to generate its own power during the process of converting molasses to sugar, while provision has been made for gas supply to fire its turbines.

    BUA blenders owns the second largest sugar refinery in Sub-Saharan Africa, located in Lagos with an installed capacity of 720,000 metric tons per annum and is set to inaugurate a second sugar refinery with the same capacity in Ports Harcourt, Rivers State next year. The company also acquired Lafiagi Sugar Company (Lasuco), Kwara State through a privatisation in 2010.

    Rabiu said: “We are pleased with the support of Governor Idris Wada by assisting us toward setting up a sugar plantation in Kogi State.We promise to support the government and people of the state, and be a loyal and productive corporate citizen.

    “The plantation will be a modern state of the art automated plant with the technology deployed from Brazil, widely known as having the best technology in sugar production and refinery.”

    The state Governor Capt. Idris Wada confirmed the allocation of land to BUA for the proposed plantation.