BUA Group teams up with Starlinger for new PP packaging plant

NIGERIA – BUA Group, a leading Nigerian food and infrastructure conglomerate, has partnered with Starlinger, an Austrian packaging materials machinery provider, to expand into packaging materials manufacturing.

Under the agreement, Starlinger will supply advanced packaging machinery to BUA Group’s new packaging production facility.

Once operational, the facility is expected to produce 600 million polypropylene (PP) bags annually, catering to the growing demand for sustainable and innovative packaging solutions.

This new business venture allows BUA Group to diversify its offerings, further supporting its rapid expansion across multiple sectors, including food, mining, and manufacturing.

Abdul Samad Rabiu, founder and executive chairman of BUA Group, emphasized the importance of this new venture, stating, “As we work to secure the future of our business through innovative investments, having our own packaging unit becomes essential.

“This facility will meet the packaging needs of our various factories, including cement, sugar, and flour, and support our long-term expansion plans.”

The deal with Starlinger is BUA Group’s largest contract in Africa and its second-largest globally.

Rabiu noted that the company’s extensive manufacturing expertise would be pivotal in setting new industry standards for sustainability, quality, and cost-effectiveness in the packaging sector.

Harald Neumuller, CEO of Starlinger & Co, expressed his excitement about the collaboration, saying, “We are honoured to work with BUA Group, a distinguished conglomerate with remarkable achievements.

“This project reflects our commitment to delivering tailored industrial packaging solutions to support BUA Group’s diverse operations. We look forward to a successful partnership.”

This partnership aligns with BUA Group’s broader growth strategy, including recent financial support from Afreximbank.

The bank approved a US$200 million corporate finance facility to assist BUA Industries’ expansion, with US$150 million already disbursed on 16 October 2024.

Starlinger’s commitment to sustainability and innovation continues to strengthen across Africa

 In 2022, the company supplied two PET (polyethylene terephthalate) bottle recycling systems to Polytank Ghana and Sonnex Packaging in Nigeria, both subsidiaries of the Mohinani Group.

These systems are dedicated to recycling used plastic bottles into food-grade rPET, contributing to a circular economy in the region.

The project is especially significant in Ghana, where it will be the country’s first bottle-to-bottle recycling plant.

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