ABUJA, SEPTEMBER 8, 2016 – Alhaji Abdulsamad Rabiu, Chairman, Cement Company of Northern Nigeria Plc, on Thursday said the company built a self-sufficient power plant with the capacity of 16 Mega Watts (MW) of electric power.Rabiu said this at the 37th Annual General Meeting of the company in Abuja, adding that it was building additional 38 MW which would be completed in 2017.
He said the increase in the capacity of the company’s power plant was completed in December 2015 and the company was now self-sufficient in electricity with 16 MW of power.
“The project for production capacity increase and the conversion of the existing production line to solid fuels which is coal ongoing and is expected to reach completion by mid 2017.
“Use of solid fuels as the main energy for the kiln will considerably reduce the company’s operational cost.’’
Rabiu attributed high price of cement to foreign exchange (Forex) problem, adding that the company operated based on importation as it needed forex to import fuel oil, equipment and spare parts.
“We do not get enough fuel from NNPC that is why we import fuel, oil particularly diesel to transport our articulated vehicles to distribute cements and operate our equipment for mining.’’
“The year 2015 was filled with tough economic challenges for the country and manufacturers in general, and the cement industry in particular.’’
Rabiu said the company was working hard and would continue to strive for better performance to enhance shareholders value in spite of its challenges.
According to him, the challenges include shortages of energy, forex for spare parts and low sales volumes from the second half of 2015.
He said the year 2015, the company recorded a turnover of N13, 037,847, 294 billion compared to N15, 119, 050, 874 billion recorded in 2014.
The company boss said the profit after tax was N1, 201,108,049 billion compared to N1, 918,361,854 billion in 2014.
He noted that the company had resolved to recommend the payment of a gross dividend of 10k per share compared to last year’s 35k per share.
Alhaji Mutalib Mutalib, who spoke on behalf of the stakeholders’, commended the company’s board for building 16 MW power plant for the company’s operations.
He thanked the board for giving shareholders 10k dividend in spite of the nation’s economic challenges.
