RMRDC ENGAGES PRIVATE SECTOR PARTNERSHIP FOR CHLOR-ALKALI PRODUCTION PLANT

The Raw Materials Research and Development Council (RMRDC) is already fast tracking on the new initiative on Public Private Sector Partnership programme being advanced by the current ongoing reforms of the present administration as it prepares for a joint venture partnership with Ace Chemical Resources Limited for the establishment of a Chlor-Alkali production plant in Nigeria. The plant, with an estimated capacity of 23 tons of caustic soda per day at 100 percent concentration, will under go an equally estimated construction period of 18 months.

The Director General (RMRDC), Eng. (Prof) Peter Azikiwe Onwualu, in an address at the just concluded Investors Forum on the Production of Chlor-Alkali,  held in Lagos in collaboration with Ace Chemical Resources Limited recently, said the plant which would also produce 20.5 tons of chlorine per day at 100 percent concentration when fully operational, would save the country about N13 billion. He said Nigeria, in the last five years, had imported caustic soda valued at N11.5 billion, and that if the values of imported hydrochloric acid were added, the total value would come to more than N13 billion.

Prof. Onwualu, who was represented at the occasion by the Director of Zonal Offices Coordination Department , Mr. Babatunde Adegbesan, also expressed his confidence in the viability of the project saying that Caustic Soda or Sodium Hydroxide was one of the expected products of the plant and a very important intermediate raw material whose usage cut across virtually all sectors of the Chemical, Textile, and Pharmaceutical industries of the national economy.

He therefore stated that the Council would be fully committed in the project execution, but would hold minimal equity to encourage more private sector participation in the project.

Earlier, Prof. Olusegun Ilegbusi, principal promoter of the company, had projected that the project, when fully operational, would make a profit Before Tax of about $31.837 million in the first of operations, and would grow to as much as $31.048 million in three years of operations.

He however estimated that the sum of $16.774 million would be required to finance the project to completion and to provide working capital. Out of this amount, he said $4.77 million would be sourced through equity investments, while $121 million would be provided by loan/lease.

Prof. Ilegbusi however guaranteed comfortable returns on investment even as he urged members of the public of the public to take advantage of the opportunity to invest in the project.

Other products from the company would include Sodium Hypochloride at 12 percent concentration for a quantity of 83 tons per day and Hydrochloric Acid, 73 tons per day at 32 percent concentration.

He said already, Unilever Nigeria, PZ industries, Nigeria Breweries, CAP Plc, Unilever Ghana, selected textile industries, Ajaokuta Steel and Ondo State Water Corporation, had indicated willingness to buy the company’s products.

The project is to be sited in Abeokuta, Ogun State.

                                                                                                                                      Chuks Ngaha