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CCNN, BUA Cement target two million tonnes capacity in Northwest region

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Abdulsamad Rabiu

Cement Company of Northern Nigeria and BUA Cement Company have expressed optimism of achieving a combined cement capacity of two million metric tonnes in the North-West region of the country under the proposed merger of the firms.

Indeed, the Board of Directors of CCNN and owners of Sokoto Cement Plant, had announced that it has informed the Nigerian Stock Exchange of its proposed merger (“Proposed Merger”) with the BUA Cement-owned Kalambaina Cement Company Ltd (“Kalambaina Cement”), owners and operators of the newly built 1.5million tonnes per annum Kalambaina Cement plant in Sokoto State.

The disclosure was made known in filings to regulatory authorities and is subject to various approvals.

If approved, the combined entity will have a total installed capacity of 2million metric tonnes per annum.

In its disclosure on the Proposed Merger, Managing Director, CCNN, Ibrahim Aminu said that the proposed merger will position CCNN for better competitiveness within its home market and also enable it utilize the more modern plant and equipment of the Kalambaina Cement Company Ltd. to boost its market penetration and export potential.

“Over the years, we have always delivered exceptional value to all stakeholders and this Proposed Merger is in continuation of that.

We have consistently outperformed the industry in key metrics such as capacity utilization but growth has been hampered over the years due to limited expansion and lack of alternative fuel sources.

“Kalambaina Cement’s 1.5million metric tonnes per annum multi-fuel (coal, heavy oils and gas) powered cement plant solves that issue with limited downtime and further opportunities for growth and expansion”, he added.

According to a statement, CCNN further alluded that the Proposed Merger provides a compelling opportunity to capture significant synergies and create value for the benefit of the shareholders of both companies in the form of stronger competitive position of the enlarged company, economies of scale, enhanced operations and administrative efficiencies which are expected to accrue.

This is in view of various challenges that had prevented CCNN from maximizing the opportunities present in its local markets where it is hampered by limited access and high cost of heavy fuels which CCNN’s Sokoto Cement factory operates on.


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