Chinese firm Sinoma International Engineering Company and Bua Group are partnering to construct a steel plant in Nigeria and 2 cement factory in East Africa
Sinoma International Engineering Company has resumed discussions with Bua Group concerning the plans to construct a steel plant in Nigeria and 2 cement factory in East Africa
Bua Group Chairman, Abdulsamad Rabiu, revealed the project’s total spending to cost US$1.9bn. Sinoma Company possesses the core technology and a complete innovation system in the non-metallic material industry. Last year the company signed a US$4.34bn deal with the Dangote Group to build various cement plants across Africa.
According to Bua Group Chairman, each of the Bua steel plant with 1.2 million tonnes capacity will cost US$1.2bn while the other 2 cement plants with an annual capacity of 3 million tonnes will cost US$700m.
He further stated that, last year the group signed a contract worth US$600m with Sinoma International to double its cement production capacity and expand its market share in Nigeria.
However, Dangote Cement has announced its plans to construct new cement plants in Nigeria, particularly in Okpella in the northern part of Edo State and Itori in Ogun State. The new plants are expected to add 9million tonnes a year to the company’s current output of 29.25million tonnes a year raising it to a total 38.25million tonnes a year.
The Itori plant will deliver 6milllion tonnes a year from two production lines. Both plants are expected to come on stream in the next 3 years to come.
The expansion drive is targeted to expand the nationwide presence and reducing the transportation cost component of its operations. He added that the new investments will also lower the cost of production, bring about a future reduction in the price of cement and generate employment opportunities in the host communities.
Dangote Cement is capable to supply to the entire western and central Africa region. The Cement company currently exports its cement to Togo, Niger and Ghana with plans to also move into the Ivory Coast.
