Nigerian food and infrastructure conglomerate BUA Group has entered into an agreement with Austria’s packaging materials machinery provider Starlinger to expand into packaging materials manufacturing.

Starlinger will supply its packaging machinery to BUA Group’s advanced packaging production facility as part of the agreement.

Upon commissioning, the facility is expected to produce 600 million polypropylene (PP) bags per annum.

This new business segment allows BUA Group to diversify its offerings, addressing the rising demand for sustainable, innovative packaging solutions amid rapid expansion.

BUA Group's businesses span the food, mining, and manufacturing sectors.

BUA Group founder and executive chair Abdul Samad Rabiu said: “As we focus on securing the future of our business through innovative investments, having our own packaging unit becomes imperative. This facility will meet the packaging needs of our various factories, including cement, sugar, and flour, and support future expansion plans.”

The deal with Starlinger is reportedly the company's largest contract in Africa and also its second-largest globally.

Rabiu added that the company's extensive manufacturing expertise will be leveraged to "set new industry standards for sustainability, quality, and cost-effectiveness."

Starlinger & Co CEO Harald Neumuller said: “We are honoured to collaborate with BUA Group, a distinguished conglomerate with remarkable achievements. This project reflects our commitment to delivering industrial packaging solutions tailored to BUA Group’s diverse operations. We look forward to a successful partnership.”

Afreximbank recently approved a $200m corporate finance facility to support BUA Industries’ expansion plans, disbursing $150m on 16 October 2024.