BUA Reduces Cement Worth To N3,500 Per Bag

BUA Group has introduced a discount of ex-factory cement worth to N3,500 per bag. The present ex-factory worth is N4,650, whereas it’s being bought.

The present ex-factory worth is N4,650, whereas it’s being bought at N5,000 available in the market.

In a press release on Sunday, the corporate introduced that the brand new worth will take impact from Monday, October 2, 2023.

The assertion, titled ‘Scale back in Costs of BUA Cement’, reads: “We confer with our earlier pronouncements concerning our intent to scale back cement costs upon the completion of our new traces on the finish of the 12 months, so as to spur growth within the constructing supplies and infrastructure sectors.

“As per the dedication made to scale back costs and following a periodic evaluate of our operations for effectivity, the administration of BUA Cement Plc needs to announce and inform our esteemed prospects, stakeholders, and the general public that efficient October 2, 2023, we now have determined to carry the worth discount ahead. In consequence, BUA Cement would now be bought at an ex-factory* worth of N3,500 per bag in order that Nigerians can start to take pleasure in the advantages of the worth discount earlier than the completion of our vegetation.

“Upon completion of the continued building of our new vegetation, which might enhance our manufacturing volumes to 17million metric tons every year, BUA Cement PLC intends to evaluate these costs additional in keeping with our earlier pronouncements by the primary quarter of 2024.

“NOTE: all pending, undelivered orders which had been paid for on the outdated costs might be reviewed downwards to N3500/bag in keeping with the brand new pricing from October 2, 2023. Our licensed sellers are additionally enjoined to make sure that end-users profit from this discount in ex-factory costs as we are going to monitor subject gross sales to make sure compliance.”

With the crash to N3,500, the market worth is anticipated to be between N3,850 and N4,000, in keeping with an Abuja-based cement vendor.

The vendor stated the discount is critical sufficient to be felt by the shoppers so long as the producer retains to its promise and the sellers respect the brand new pricing regime.

Final month, when he visited President Bola Tinubu at Aso Rock, Chairman of BUA Group, Abdul-Samad Rabiu, informed State Home Correspondents that his firm was set to scale back the worth of cement.

Rabiu added that to help the efforts of the federal government to crash the worth of the product, the corporate would add two new vegetation on the finish of the 12 months or early subsequent 12 months.

In keeping with him, the vegetation to be commissioned by Tinubu, would carry BUA Cement’s complete capability to 17 million metric tons.

He stated: “Let me thank His Excellency Mr. President for graciously receiving me immediately. I got here to intimate His Excellency on the affairs of our cement enterprise. Now we have two new traces of three million tons every that we’ll be commissioned by the tip of the 12 months.

“So I got here to intimate His Excellency and likewise to elucidate to him the efforts we’re making in making an attempt to help once more the efforts of the federal government in bringing down the worth of cement.

“With this 6 million tons which can be commissioning by the tip of the 12 months. And by the way in which, His Excellency has agreed to come back and fee the vegetation, generally in December or early January subsequent 12 months.

“So I defined to him and we wish to help the efforts of the federal government in bringing down the worth of cement. By the point these traces are commissioned, BUA Cement will to be producing about 17 million tons every year. And with that, we intend to carry down the worth of cement from its present stage of N5,000 or N5,500 per bag to possibly N3,000 to N3,500 per bag.

“And we will solely do this as a result of we’re producing cement regionally. 80% of the uncooked supplies that we’re utilizing to provide cement are in Nigeria. We wish to help the federal government efforts in guaranteeing that the worth of those commodities are introduced down.”