By Franklin Alli
NOTORE Chemical Industries Limited plans to generate more than N36 billion revenue at full production from sales of its fertiliserâ€™s products locally.
â€œOnce production is stabilised, the company will generate over N3 billion monthly or N36 billion per annum in revenues from urea sales, which will enable us meet all our obligations,â€ the company said in a statement, Tuesday.
It will be recalled that the chemical firm received a project finance facility of $222 million from a consortium of 8 Nigerian financial institutions including Oceanic Bank in February 2007.
The project finance loan was for the rehabilitation of Notoreâ€™s urea fertiliser plant from which revenues were not expected to be generated until the commencement of production.Â The loan is payable over a six year period with an 18 month moratorium. The rehabilitation project was planned to last for a period of 14 months. However, the project suffered a year delay due to several unforeseen challenges which included:
According to the company the escalated security situation in the Niger Delta, which made it difficult for staff and vendor service men (VSM) to enter the region until their safety was assured. A safe working environment was therefore created at significant cost to the company. This was not anticipated at the time of project planning. There was gas supply disruptions due to militant activities on pipelines that led to the shortage of gas (the primary raw material for Notoreâ€™s production) which contributed to the delay in refurbishment and commencement of commercial activities.
It also said that technical delays arose from additional work scope as the project progressed.Â These challenges have now largely abated and the plant successfully commenced urea production in July 2009. Notoreâ€™s urea fertiliser plant is the only urea production facility in the whole of sub-Saharan Africa .Notore has also invested significantly in building a world-class organisation with proper structures, people, processes and systems. Notore has recruited and trained over 400 employees and developed a strong distribution network which includes 60 dealers, over 1,500 retailers nationwide, and 300 haulage trucks to ensure that Notoreâ€™s products gets to the Nigerian farmer.
It said that it is playing a major role in developing Nigeria â€™s economy through agriculture. The Company has signed an MoU with Cross River and Taraba Statesâ€™ Governments in April and June respectively to establish in each of the states a 255,000 Metric Ton-producing Rice Mill and a 20,000 hectare rice farm. The Rice Mills which have the potentials to create over 30,000 new jobs will complement the states wide out-growers buy-back scheme to supply extra paddy rice required by the massive Mills.