BUA Group, which is one of Nigeria’s largest companies is going to get bigger soon as the company is in discussions with a Chinese Company called Sinoma to build a steel plant in Nigeria and two cement plants in East Africa for $1.9 billion.
BUA Chairman, Abdulsamad Rabiu, who is on Forbes list of top 50 richest Africans with an estimated networth of $1.1 billion told Reuters that deal will result in the building of two cement plants, which will have an annual capacity of 3 million tonnes each. Both cement plants are projected to cost $700 million. The steel plant will have a capacity of 1.2 million tonnes and will cost $1.2 billion.
BUA Group earlier this year sold its flour milling business to Olam International in a deal worth $275million. The company also announced that 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 its current line of Foods and Infrastructure businesses for market leadership.
BUA Group started business in 1988 as a Private Limited Liability Company specializing in the importation and marketing of iron and steel, agricultural and industrial chemicals. Since then it has rapidly developed into a fully-fledged, diversified business with a stake in a wide range of business sectors.
