04 Nov 2014
Chairman of BUA Group, Alhaji Abdulsamad Ra
Crusoe Osagie
Chairman of BUA Group, Alhaji Abdulsamad Rabiu, has thrown his weight
behind Dangote Cement Plc’s reduction in the cost of cement from about
N1,700 to N1,000 a bag, representing a 40 per cent price cut, which was
announced at the weekend.
According to Rabiu, he has always advocated a reduction in the cost of
cement so that more Nigerians can have access to the product and realise
their dream of owning houses of their own.
“It is against this background that I commend Alhaji Aliko Dangote for
this patriotic initiative which is long overdue,” he said.
He further revealed that he had an extensive telephone conversation
with Dangote on the issue and encouraged him on the initiative.
“What Alhaji Dangote has done today is significant. I am very pleased
about it because it would make the cost of the product more easily
affordable to Nigerians. With this price reduction, more consumers will
be able to buy the product and subsequently drive up demand and in turn
increase market share for industry players.
“I hereby urge all cement producers to emulate Dangote and bring down
the cost of cement. There is absolutely no reason for a bag of cement to
cost so much.
“Despite the infrastructure challenges being faced by the manufacturing
sector of the Nigerian economy, it does not justify the high cost of
cement.
“On our part, I have already directed all our plants to follow suit and
implement the new price regime. We still believe that more can be done
to bring down the price even further for the benefit of Nigerians,”
Rabiu stated.
The BUA Group chairman stressed that there was really no reason for the
price of cement to exceed N1,000 per bag, bearing in mind the massive
success of the backward integration policy implemented 12 years ago, in
which tens of billions of dollars were directly and indirectly injected
into the Nigerian cement industry with Dangote Cement accounting for the
larger share of the contribution.
This has seen cement national productivity rising from a mere 2.2
million metric tonnes per annum (mtpa) to over 30 million mtpa in the
last 10 years, Rabiu observed.
BUA Group acquired Edo Cement Company Limited three years ago and has
spent over $500 million in putting up an ultra-modern three million mtpa
production line which is billed to be commissioned in the first quarter
of next year.
Upon completion of this plant, the total annual production capacity will rise from 500,000 mtpa to 3.5 million mtpa.
In addition, the company also has controlling equity in Sokoto Cement
Company also known as Cement Company of Northern Nigeria Plc (CCNN). The
plant is presently being expanded with a 1.5 million mtpa line. Work is
currently in progress and will be commissioned early 2016.
Chairman of BUA Group, Alhaji Abdulsamad Ra
Crusoe Osagie
Chairman of BUA Group, Alhaji Abdulsamad Rabiu, has thrown his weight
behind Dangote Cement Plc’s reduction in the cost of cement from about
N1,700 to N1,000 a bag, representing a 40 per cent price cut, which was
announced at the weekend.
According to Rabiu, he has always advocated a reduction in the cost of
cement so that more Nigerians can have access to the product and realise
their dream of owning houses of their own.
“It is against this background that I commend Alhaji Aliko Dangote for
this patriotic initiative which is long overdue,” he said.
He further revealed that he had an extensive telephone conversation
with Dangote on the issue and encouraged him on the initiative.
“What Alhaji Dangote has done today is significant. I am very pleased
about it because it would make the cost of the product more easily
affordable to Nigerians. With this price reduction, more consumers will
be able to buy the product and subsequently drive up demand and in turn
increase market share for industry players.
“I hereby urge all cement producers to emulate Dangote and bring down
the cost of cement. There is absolutely no reason for a bag of cement to
cost so much.
“Despite the infrastructure challenges being faced by the manufacturing
sector of the Nigerian economy, it does not justify the high cost of
cement.
“On our part, I have already directed all our plants to follow suit and
implement the new price regime. We still believe that more can be done
to bring down the price even further for the benefit of Nigerians,”
Rabiu stated.
The BUA Group chairman stressed that there was really no reason for the
price of cement to exceed N1,000 per bag, bearing in mind the massive
success of the backward integration policy implemented 12 years ago, in
which tens of billions of dollars were directly and indirectly injected
into the Nigerian cement industry with Dangote Cement accounting for the
larger share of the contribution.
This has seen cement national productivity rising from a mere 2.2
million metric tonnes per annum (mtpa) to over 30 million mtpa in the
last 10 years, Rabiu observed.
BUA Group acquired Edo Cement Company Limited three years ago and has
spent over $500 million in putting up an ultra-modern three million mtpa
production line which is billed to be commissioned in the first quarter
of next year.
Upon completion of this plant, the total annual production capacity will rise from 500,000 mtpa to 3.5 million mtpa.
In addition, the company also has controlling equity in Sokoto Cement
Company also known as Cement Company of Northern Nigeria Plc (CCNN). The
plant is presently being expanded with a 1.5 million mtpa line. Work is
currently in progress and will be commissioned early 2016.
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