Nigeria: The Cement Company of Northern Nigeria (CCNN) has disclosed plans to raise US$280m for the establishment of a new 1Mt/yr cement production line.
According to the chairman of CCNN, Alhaji Abdulsamad Rabiu, the board of the company is now ready to implement the resolution passed at the 32nd AGM (in 2011) that authorised it to raise the necessary funds.
To help the expansion, the investment includes new coal grinding mill and accessories to help it produce more electricity. CCNN currently produces 90% of its required electrical energy requirements due to high prices and unreliable national network provision. The chairman added that the company had previously implemented an alternative fuel strategy by using rice husks. This has already cut its production costs by 15%.
CCNN made a net profit of US$7.4m in the year to 31 December 2012. This was down by nearly 50% compared to the US$14.2m that it made in the year to 31 December 2011.
