Work begins on largest fertiliser plant in PH .

Wednesday, 18 May 2011 00:00 Ignatius Chukwu    . .

The proposed fertiliser plant coming on stream at the Eleme Petrochemicals Company Limited (EPCL) complex will be the largest single trainurea (fertiliser) plant in the world, and this is official. By this, Indorama Corporation, core investors in the EPCL, has confirmed

BusinessDay’s Monday front page scoop on plans to splash $1.8 billion on building two plants - one for fertilizer and the other for methanol, an alternative fuel substance. Methanol is indicated as “a poisonous alcohol, a colourless volatile poisonous water-soluble liquid used as solvent, fuel, and used in antifreeze for motor vehicles”.

BusinessDay can confirm that already, a lot of work has been done in the technical surveys, environmental impact assessment, land development, adequate power supply and gas availability, while local employment is also in progress. These projects are targeted to commence production between 2014 and 2015, it was gathered.

EPCL said in a statement in Port Harcourt Tuesday that President Goodluck Jonathan has given his nod for the establishment of the two plants. The federal government, through the Bureau for Public Enterprises (BPE) and the Nigerian National Petroleum Corporation (NNPC), retains 25 per cent equity in EPCL, ostensibly to give an oversight power in the investment and to protect national interest, while Indorama (with the Rivers State government) has 75 per cent.

Confirming the new investment, the managing director, Munish Mundra, said substantial work has already commenced in Port Harcourt for the new plants. A press release issued in Port Harcourt by Jossy Nkwocha, Special Adviser to the MD/Head, Corporate Communications, confirmed that the fertiliser plant will be “the largest single train Urea Plant in the world; and once these plants are commissioned, EPCL’s Port Harcourt complex will be one of the largest petrochemical companies in Africa.”

The statement further confirmed BusinessDay’s story that the chairman of Indorama Corporation, S.P.Lohia, who saw EPCL through to success after the 2006 privatisation process as the first MD/CEO, met with President Jonathan Monday evening at the Presidential Villa in Abuja where the approval was given.

The press release quoted the President as saying that he was quite happy with the plans of the Indorama group to build world-class fertiliser and methanol plants in Nigeria, promising to give the company all the support it required to make the project a success for the benefit of Nigerians and the company.

Nkwocha noted that the chairman of Indorama had earlier informed the President that the fertiliser plant, when completed, would deliver one million tons of ammonia and urea fertilisers annually for Nigeria’s agricultural and industrial purposes. The methanol plant, he said, would also serve as alternative fuel for public transportation and for industries to enhance the energy sector.

On May 17, the MD, Mundra, formally announced the multi-billion naira projects adding that the company was also adding Low Density Polypropylene (LDPE) production facilities in Port Harcourt.

According to the release, Mundra is very optimistic that the project will greatly enhance the economy of Nigeria through employment generation, availability of enough fertiliser for agricultural and industrial use and for exports, revenue to government in terms of taxes, levies and VAT; dividend payments to shareholders, and development of the host communities. “We are committed to the development of the economy of Nigeria and the welfare of the Nigerian people through our investments,” Mundra said.

Indorama has been a touted as a great success story in the Public-Private Partnership programme in Nigeria, despite the initial tantrums against former president Olusegun Obasanjo and the BPE boss at the time, Irene Chigbue. Its success is being cited by one and all as a model to be emulated and its commitment to Nigeria is being reinforced by these new investments.

So far, Indorama has been able to create jobs, both direct and indirect, in the troubled Niger Delta and has also contributed significantly to the economy of the nation through employment opportunities, taxes, import substitution, export earnings, among others. Stakeholders have lauded its effort in nurturing local talents and for being a well managed organisation in Nigeria.

Indorama invested a total of $400 million in 2006 as a core investor in the privatised EPCL and it has since revamped the company to full capacity production, turning Nigeria into a net exporter of plastic resins (polypropylene and polyethylene) besides meeting the needs of the local plastic industry.


http://www.businessdayonline.com/NG/index.php/news/76-hot-topic/21623-work-begins-on-largest-fertiliser-plant-in-ph

Another report to counter the VP's query on privatised companies that are not functioning?

johnie:

Who are the new owners of these companies?

Who was the yard concessioned to?

https://www.nairaland.com/nigeria?topic=666278.msg8311385#msg8311385


https://www.nairaland.com/nigeria/topic-663363.160.html#msg8347079