CCNN Plans to Increase Production Capacity 

Cement Company of Northern Nigeria Plc (CCNN) plans to increase its production from 329,000 tonnes in 2010 to 600,000 tonnes per annum within the next few years, according to Mr. Alf Karlsen, the Managing Director of the company.

He told a team of journalists, led by an official of the Bureau of Public Enterprises (BPE) on an independent assessment of the company’s facilities in Sokoto, that plans are underway to seek authorization of its shareholders to raise N45 billion through a combination of convertible debenture (by way of rights), a rights issue and a public offer to finance a new one million clinker production line. He said if approved, the production line would be commissioned in 2014. The Company’s Annual General Meeting comes up in Abuja on July 12, 2011.
He noted that the expansion is being undertaken in order to ensure that CCNN, which was fully privatised in 2000, remains a competitive cement manufacturer in the country. According to him, production was 57, 000 tonnes in 2001. He added that the workforce has increased from 292 in 2002 to 359 in 2010

Karlsen explained that the company’s catchments supply area remains the six Northern States of Kebbi, Sokoto, Kaduna, Kano, Zamfara and Jigawa. He added that the company’s supply chain could not be extended to other parts of the country due to high cost of transportation.

The Managing Director of CCNN stated that the company has spent N7, 515,000,000 to upgrade existing production facilities and for investment in fixed assets. He added that further upgrading is in the works. Towards this end, a new girth gear for one of the cement mills has been ordered at the cost of N110, 000,000 while another packer has been ordered at a cost of N225, 000,000. The installation will take place in third quarter of 2011.
To tackle the challenges associated with the LPFO supply, Karlsen disclosed that the board has approved an investment of N2.4 billion for converting of coal or pet coke to kiln fuel.