BUA Cement has announced plans to increase its capacity by an additional 9 million metric tonnes per annum.
The fast growing Cement manufacturer said will sign an agreement this week with Sinoma CBMI of China, and the production lines will be located at Adamawa, Edo and Sokoto States.
BUA Cement recorded strong profit growth in the 9 months period to September 2020, even amid the weak construction activities caused by prolonged period of lockdown imposed by the government to curb the spread of the coronavirus pandemic.
For the first nine months through September 2020, the cement giant’s net income surged by 23.83 percent to N53.56 billion as against N43.25 billion as at September 2019.
BUA generated more money from its operations as operating profit spiked by 15.67 percent to N62.35 billion in September 2020 from N53.90 billion the previous year.
With the new capacity injection, BUA stock should sustain its rally on improvement on market sentiments. Meanwhile, a slew of analysts have been overly bullish on BUA, the third force in the cement industry after its successful business combination.
The new capacity addition should take BUA to about 17 Million tonnes Per Annum in the Nigerian market.