BUA Foods Plc, a Lagos-based food conglomerate majority-owned by Nigeria’s third richest man, Abdul Samad Rabiu, has formed a strategic alliance with Italian pasta equipment maker FAVA to expand its pasta production capacity.
The agreement will allow BUA Foods to more than treble its existing output from 400,000 to 900,000 tonnes per year.
The expansion, announced in a statement to the Nigerian Exchange (NGX), is part of BUA Foods’ aim to increase its market position in Africa’s competitive pasta business while also contributing to Nigeria’s food security as demand for staple foods rises.
As part of the arrangement, BUA Foods will install nine new long-cut pasta production lines, increasing yearly capacity by 400,000 tonnes.
This is consistent with the company’s overall objective to improve food security and meet the rising demand for pasta in Nigeria and throughout Africa.
In addition to the FAVA relationship, BUA Foods secured a contract with Italian company Martini to offer modern packaging technology, streamlining its distribution operations and boosting product delivery in Nigeria and nearby regions.
Chairman Abdul Samad Rabiu, Nigeria’s second-richest man, said the expansion demonstrates BUA Foods’ commitment to alleviating food shortages while maintaining excellent quality standards. “Our capacity expansion will allow us to serve our markets better while contributing to alleviating food shortages in the country,” Rabiu told the crowd.
BUA Foods is growing its flour production capacity to 2.5 million tons per year through a new arrangement with a Turkish firm. This move is prompted by rising demand for flour and pasta in Nigeria, which is experiencing supply chain disruptions and inflationary pressures.
BUA Foods is expanding following solid financial results, with earnings after tax rising 38 percent to N130.93 billion ($83.2 million) in the first half of 2024, up from N95.19 billion ($60.47 million) the previous year.
Revenue increased by 110 percent to N672.3 billion ($427.2 million), boosted by sugar, wheat, and pasta sales. This development puts BUA Foods to compete with important players in Nigeria’s pasta sector, including Flour Mills Nigeria Plc and Dangote Foods.
