Olam poised to double wheat milling capacity as it acquires US$275m Nigeria assets

It’s set to be a leading pasta player in Nigeria.

The agribusiness company is set to make waves in the Central African country as it is set to acquire assets of wheat milling and pasta manufacturing from BUA Group.

According to a statement by Olam, it has acquired Amber Foods limited, which owns the wheat milling and pasta manufacturing assets of the BUA Group in Nigeria.

“The BUA Group, a diversified foods and infrastructure business group in Nigeria, is among the top five wheat millers in the country with wheat milling and pasta manufacturing capacities of 3,760 and 700 metric tonnes per day (TPD) respectively,” the statement said.

The statement added that the assets to be acquired include two wheat mills and a pasta manufacturing facility in Lagos, a non-operating mill in Kano in the North of Nigeria, and a wheat mill and a pasta manufacturing plant under construction in Port Harcourt in the Southeast of Nigeria.

“The acquisition will strengthen Olam’s position as the number two wheat miller by sales volume and make it a leading pasta player in Nigeria. Olam’s total wheat milling capacity in the country will increase from its current 2,380 TPD to 6,140 TPD once the facilities in Port Harcourt are completed in June 2016,” Olam said.