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The cement industry is facing increasing competitions as leading players brace up capacity to bargain for better share of the growing cement sector.
The industry saw two giants leverage mergers and acquisitions between 2017 and 2018 to expand capacity and intensify competition.
Cement Company of Northern Nigeria (CCNN) saw an improved performance in 2018 on the back of its merger with Kalambaina Cement. The performance in 2018 was sustained in the first quarter of 2019 and possibly heralds a better full year outing for the cement maker.
Cement Company of Northern Nigeria Plc (CCNN) is one of the oldest players in the Nigeria’s cement industry and was founded by Alhaji Sir Ahmadu Bello, the Premier of the then Northern Region and Sardauna of Sokoto.
CCNN engages in the production and marketing of CEM II type of cement in accordance with the Nigerian Industrial Standards under the brand name “Sokoto Cement”.
Incorporated on August 15, 1962 as a Limited Liability Company, CCNN commenced production of Cement five years after, with an initial installed capacity of 100,000 tons per annum at the Kalambaina plant in Sokoto state, Northern Nigeria.
The capacity of CCNN was expanded in 1985 after current president – the then Head of State, Major General Muhammadu Buhari -commissioned a second line with an installed capacity of 500,000 tons per annum brining CCNN’s total capacity to 600,000 tons per annum.
However, CCNN was forced to shut down its first line in 1986 on account of production inefficiencies, thus reducing its total capacity to 500,000 tons per annum.
Under the administration of Ibrahim Badamasi Babangida in 1992, the Federal Government disinvested about 20% of its holding in CCNN and sold it to the Nigerian Public in a bid to improve operational efficiencies and as part … Read More...