THE Cement Company of Northern Nigeria, CCNN, Sokoto, is to invest about $600 million to build an additional power plant to make it self-sufficient in power supply to enhance its production capacity. The company that is currently generating 12MW of electricity is building the new plant in partnership with a Chinese company, CBMI, to expand to 16 megawatts, MW.
This was disclosed by M. S. Suleiman, principal manager (Corporate Affairs) CCNN, when the post privatisation monitoring team of the Bureau of Public Enterprises, BPE, led by Ibrahim Babagana visited the plant recently. Suleiman said that hitherto, “CCNN’s plant does not generate sufficient power to take the full load when running the plant on full capacity utilization”.
He said that CBMI, China, has started the construction of a new production line which has a production capacity of one million tonnes of clinker per year, and that the line should be commissioned by the end of 2016 to increase the company’s capacity by about 200 per cent. The Project Manager also told the team that the company is being operated by the core investor with total staff strength currently put at 383 of which only 2 are expatriates.
It should be recalled that the company was incorporated in 1962 and was partially privatized in 1992 and fully privatized in 2000 with Heidelberg Cement as Core investor. However, through merger and acquisition, CCNN shares were sold to Damnaz Cement Co. Ltd in 2008 and Damnaz assumed full responsibility as core investor with its technical/administrative experts. In January 2010, Damnaz was acquired by Messrs Bua International Ltd.
The current ownership structure has core investors owning 50.7 percent of the company; State Governments over the years reduced their shareholding from 36.8 percent to 7.6 percent; while other private shareholders retain 41.7 percent
Earlier, the BPE team that was conducted round the plant expressed satisfaction with the success story of the privatisation.
— Jun 29, 2015 @ 01:00 GMT