One of the major cement producing companies in Nigeria, BUA Group, says it has no plan to increase the price of its products despite the decision of Dangote Cement to up its price.
BUA, which made this known in a statement issued on Friday and obtained by PlatinumPost, said it would never associate with any decision that is capable of causing more hardship for Nigerians.
The company said whilst Dangote Cement has the right to increase the price its products, it would not participate in the formation of a cartel in the nation’s cement industry.
BUA said the price of cement is already on the high side in Nigeria and vowed to ensure it continues to play a major role that would see to the downward review of the product.
“We are compelled to release this statement following requests from our distributors and customers seeking clarification as to whether BUA also intends to increase the price of its cement.
“This is in view of a purported increase of N260 by another major Cement producer – Dangote Cement.
” We are now aware that Dangote Cement has increased the price of its Cement (ex-factory) by N260 effective Monday, June 14, 2021.
“BUA is not a part of this increase and will not seek to increase the price of its cement (ex-factory) in the foreseeable future.
” BUA therefore restates its earlier position communicated on April 24, 2021 that it will not join in any increase in the prices of Cement for the foreseeable future,” parts of the statement read.
“As a responsinble coperate entity, we refuse and reject associations with any actions that are deemed capable of projecting any industry we operate in as a cartel. Hence, while we respect that the said company has decided ti increase their prices, we are not quetioning the reason while, but would like to make it BUA’s position on a price increase.
“The timing is not right to any increase in BUA part and we do not have any justifiable business reason to increase our prices (ex-factory ) anytime soon,” the statement added.
PlatinumPost reports that Dangote Group and BUA Group are major competitors in the Nigerian sugar and cement sectors.