BUA Group reportedly in talks to build two plants in east Africa

The BUA Group of Nigeria in talks with China’s Sinoma to build two cement plants in east Africa and a steel plant in Nigeria for US$1.9bn, according to a report by Reuters.

BUA Group chairman, Abdulsamad Rabiu, told the international news agency that the two cement plants will have a capacity of 3Mta and cost US$700m. The steel plant will have a capacity of 1.2Mt at a cost of US$1.2bn.

In a statement, BUA said the pact came following the successful start of production at its new Obu cement plant in Nigeria, adding that it is set to further double the capacity of the plant to 7Mta. This agreement, signed at the Sinoma CBMI offices in China will further bolster BUA Group’s share of the cement market in Nigeria.