BUA Foods Plc has announced the acquisition of the first of two shipping vessels to support the company’s sugar export operations.
This was disclosed in a notice filed with the Exchange (NGX) and signed by the company’s Director, Marketing & Corporate communications, Adewunmi Desalu.
The company, which is one of Africa’s leading FMCGs, disclosed that it has taken delivery of one of two shipping vessels to aid the company’s sugar export operations to the West African market which had commenced earlier this year.
According to the disclosure, the company’s export of refined sugar will be of benefit to the Nigerian economy as it will provide an alternative source of income, and in the same vein, diversify the company’s markets.
It read, “The vessels will depart and berth at BUA’s port and terminal increasing export capacity while reducing operating cost. The Mitsubishi of Japan-built vessel is named MV Bundu – after the area in which the refinery is located. The vessel’s cargo capacity is suited to enhance quick and sustainable delivery of more refined sugar in the face of growing export demand from across the African region”.
“The refined sugar of high-grade quality is processed from BUA Foods’ ultra-modern sugar refinery located in Port Harcourt. This state-of-the-art refinery with a capacity of 750,000 metric tons, is also equipped to process all grades of sugar”.
What the company is saying
Speaking on the recent development, the Chairman of BUA Foods Plc, Mr. Abdul Samad Rabiu, stressed the importance of owning a shipping vessel and its relevance in successfully executing and fulfilling the company’s strategy.
He said, “As we drive our business for growth with focus on sustainable returns, and benefit to all our stakeholders and the Nigerian economy, owning a shipping vessel is an important step in BUA Foods strategy”.
“We see an increased and continued demand for refined sugar across the region with attendant increase for logistics support to aid timely delivery, which is why it is important for us to strengthen our current capability with our own controlled asset as we advance further in our business strategy. These new vessels will create operational efficiencies in our business and open possibilities for new services.”
The Managing Director of BUA Foods, Engr. Ayodele Abioye, said “Owning a vessel to export sugar is a crucial enabler of flexibility and agility in our total supply chain as it allows our customers to tackle time-critical fulfillment challenges due to timely availability of their goods”.
He further stated that, “As we expand our customer base into the region, we strongly believe in working closely with them towards meeting and surpassing their needs in time and in full”.
Finally, by the end of Q2 2022, the company plans to take delivery of a second cargo vessel, which will boost cross-border trade to enterprises across and beyond the West African region, as well as position the company to benefit from the AfCFTA, given its previous investments in the food sector.
About BUA Foods Plc
BUA Foods is a leading food business with well diversified and scalable operations producing sugar, flour, pasta, rice and edible oils. The company owns strategically located plants across Nigeria, in addition to a cordial alliance with local stakeholders in host communities. Additionally, BUA Foods is a resilient business built on a strong brand proposition and is an operator that has a well-known reputation for delivering high-quality products.
BUA Foods continues to invest in modern technology for efficient food production, innovatively expanding with strategic partners across the value chain. The Company is also well positioned to leverage significant export potentials across West Africa and the larger African continent.
Headquartered and listed in Nigeria, BUA Foods is one of the most capitalized companies on the NGX and a leading consumer goods firm by market value