Nigerian manufacturing and trading conglomerate, BUA Industries Limited has secured a $200 million loan from the African Export-Import Bank (Afreximbank) to fund expansion project.
Afreximbank in a statement disclosed that the first tranche of the corporate finance facility being $150 million was disbursed on October 16, 2024.
Alhaji Abdul Samad Rabiu, Chairman of BUA Industries Limited, stated that the facility represents a significant milestone in BUA’s commitment to advancing Nigeria’s manufacturing, infrastructure, and energy sectors for both local consumption and export.
Earlier this year, BUA Foods Plc signed an agreement with Turkish milling equipment manufacturer IMAS to construct four new wheat milling factories with a combined capacity of 3,200 tonnes per day.
The statement noted that these new mills would increase BUA’s total milling capacity to 2.5 million metric tonnes annually.
The company emphasized that these new factories will enhance manufacturing capacity and capabilities, allowing for the production of more high-quality products to help address food challenges in Nigeria.
In addition, BUA Foods Plc signed a capacity expansion agreement with Italian company FAVA to increase its annual pasta production from 400,000 tonnes to 900,000 tonnes.
The company stated that this expansion includes the addition of nine long-cut pasta production lines, boosting pasta output by 400,000 metric tonnes per year.
Additionally, BUA Foods Plc signed another agreement with an Italian firm to supply packaging equipment for its operations.
BUA Foods Plc’s expansion projects are expected to intensify competition in the pasta production market, where major players like Flour Mills of Nigeria Plc and Dangote Foods are all competing for market share.
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