BUA Foods Plc (NGX: BUAFOODS) has announced plans to significantly expand it past production facility. The company made the announcement after signing an agreement with FAVA (Italy) to expand its pasta production facility.
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When completed the project will increase the company’s annual production capacity by 400,000 Tonnes to 900,000 MTpa. The new project, which serves as one of several efforts aimed at mitigating food supply challenges in the country, will result in the addition of nine (9) lines of long cut pasta (6,000 kgs/hr).
To support the expansion project, a complimentary agreement was also signed with Martini (Italy) to supply packaging equipment. These come on the heels of a strategic agreement signed with Cukurova Silo (Turkiye), a global leader in silo solutions, to increase BUA Foods’ grain storage capacity by 100,000 tonnes.
This investment in additional pasta lines, packaging and storage systems are part of the Company’s goal to serve customers better, increase its manufacturing footprint and achieve it’s business objectives.
“Our manufacturing capacity expansion will continue to enable us extend the boundaries of what we can produce and deliver, supporting our nation’s development by providing solutions to ongoing food shortages” said BUA Foods’ Chairman, Abdul Samad Rabiu, CFR, CON. “In addition to producing more pasta, we’ll be able to introduce new innovations to support mixed volume growth, while consistently delivering the unrivalled product quality our customers expect.”
Rabiu further stated that “The additional 100,000 tonnes of grain storage capacity will enable us to meet the growing demand for our products while strengthening the backbone of our food processing operations by ensuring a reliable and consistent supply of raw materials”.
The pasta facility expansion project follows an agreement the company signed with IMAS, a prominent Turkish flour milling equipment manufacturer, to build four (4) state-of-the-art wheat and flour milling factories leading to a boost in the company’s milling capacity to 2.5million MTpa.
When completed, the production capacity expansion project will strengthen the Company’s manufacturing presence and market leadership while also creating new jobs.
BUA Foods Plc reported over 100% growth in its turnover in the first half of 2024, posting a turnover of ₦672.39 billion in H1 2024 against ₦320.93 billion posted in H1 2023.
Pasta sales contributed ₦73.03 billion (H1 2023: ₦37.91 billion) to its turnover) in the first half of the year.
In 2023, Pasta contributed ₦87.75 billion (2022: ₦87.24 billion) to the company’s ₦729.44 billion revenue.
The company’s Pasta Factory Plant is located at BUA Foods Industrial Complex, 26 Nnamdi Azikiwe Road, Port Harcourt, Rivers State.
About BUA Foods Plc
BUA Foods Plc was formed in November 2021 following a scheme of restructuring under Section 711 of the Companies and Allied Matters Act involving BUA Sugar Refinery Limited, IRS Flour Mills Limited, IRS Pasta Limited, BUA Rice Limited, and BUA Oil Mills Limited, further to which BUA Sugar Refinery Limited (a private limited liability company, incorporated on 13 April 2005 and commenced business operations in September 2008) emerged as the surviving entity.
As part of the restructuring, the name of the enlarged entity was changed to BUA Foods Plc with its operations reorganised into five business
divisions: Sugar, Flour, Pasta, Rice and Edible Oils. In December 2021, the Company was converted into a public limited liability company. BUA Foods is affiliated with diverse group companies under the BUA brand that span the food and infrastructure sectors, and was listed in the Nigerian Exchange Group (NGX) on 5 January 2022.
Furthermore, by share transfer forms each dated 11 October 2021, the shareholders of BUA Sugar Refinery FZE and LASUCO Sugar Company Limited (“Subsidiaries”) transferred all their shares to BUA Sugar Refinery Limited (now BUA Foods Plc) thereby making them wholly owned subsidiaries of the BUA Foods Plc.
The principal activities of the Group are processing, manufacturing, production and distribution of food materials such as sugar, flour, pasta, rice, and edible oils as well as packaged foods. These activities are conducted primarily in Nigeria.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
