Pleasant surprise as BUA mulls reduction in cement price

Pleasant surprise as BUA mulls reduction in cement price

BUA Cement may just shake up the cement industry soon by reducing the price of its product. This is according to Mr Nasir Ladan, the General Manager in charge of BUA South-South.

Mr Ladan made this disclosure when he addressed participants at a one-day workshop on ways to optimise cement usage. The workshop took place in Port Harcourt, the Rivers State capital city.

According to the Managing Director, the planned reduction in the price of the company’s cement brand will definitely happen, despite the high cost the company incurs in the cause of doing business.

He specifically mentioned the high transportation and energy costs as some of the biggest challenges faced by the company.

“We are working hard to bring prices down despite limiting factors, especially high energy and transport costs. We have brands that fit into all regions and climatic conditions in Nigeria. BUA can serve well in Sokoto as well as in the Niger Delta. We have a combination that is good and strong at all times and in all regions.” – Ladan

Note that Mr Ladan made no mention about when the planned price reduction will take effect, or how much exactly the new price will be.

The company is also expanding to meet growing demand…

Speaking further, Mr Ladan said his company is opening up a new production line come January 2019. This is part of the company’s effort to increase its market share, he said. He also noted that “it is because of high demand for BUA cement that we are increasing output.”

Meanwhile, the company is faced with intense competition

The Nigerian cement industry is undoubtedly a very competitive one. This is due to the presence of the likes of Dangote Cement Plc, Lafarge and other smaller players. Obviously, BUA Cement is aware of this competition. But Mr Ladan said his company is prepared for this competition.

“We expect competition but we are prepared for it because competition is the bedrock of business success.”

Will a reduction in BUA Cement price prompt other players to follow suit?

It is unclear if a reduction in the price of BUA Cement will influence others such as Dangote Cement to do the same. But this is a likelihood, considering the fact that the company is indeed a major player in the Nigerian cement industry.

 

 

Source: Nairametrics

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