Group to invest N325.5bn in Eleme petrochemicals

51 Views Comment Off
Eleme Petrochemicals

Eleme Petrochemicals

Indorama Group, the core investor in Eleme Petrochemicals Limited, Rivers State, has concluded arrangements to invest additional N325.5 billion ($2.1billion) in three new plants at Eleme Petrochemicals for PET, fertilizer and methanol projects within the next three years.

The additional investments will complement the about existing $575 million, which the Group has injected to revive the moribund plants that currently produce various petrochemical products such as polyethylene and polypropylene for exports.

The Minister of Trade and Investment, Mr. Olusegun Aganga made the remarks on the group’s new investment plan during his inspection visit of the facilities and operations of the company Monday.

A statement from the Ministry of Trade and Investments said that the Indorama Corporation, with headquarters in Indonesia, was founded in 1976 and operates in Singapore, India, Thailand, Egypt, Sri-Lanka and Turkey, among other countries.

The company emerged core investor in the privatization of Eleme Petrochemicals in 2006 with federal Government controlling 15 percent, Rivers state government 10 percent, host communities 7.5 percent, employees 2.5 percent while the group controls 65 percent ownership.

Speaking, the minister said that the Federal Government would initiate policies and a regime of incentives, which would drive the petrochemicals sector to ensure that Nigeria becomes the hub of the petrochemicals industry in Africa and globally.

“The Indorama Group said they had concluded plans to invest additional $2.1 billion in three new plants at Eleme Petrochemicals for PET, fertilizer and methanol projects. This is a clear indication that we have the potentials to make Nigeria the hub of petrochemical industry in Africa and then compete with other major global players.

“This is because we have the raw materials and the people. The model today is that most of the raw materials used in the petrochemical industry are produced in the Middle East. The latest Forbes ranking of the wealthiest nations, which was released a few days ago, showed that Qatar has become the richest country in the world, with per capita income of more than $88,000. This is based on the growth of their petrochemical industry,” he said.

He said that with the plans the Indorama Group has on ground, Nigeria will have the second largest petrochemicals facility in Africa, second to South Africa adding that “it won’t take long, within the next two to three years, we should have the largest petrochemicals industry in Africa.”

In : Business

Related Articles