By Franklin Alli
United Nigeria Textiles Plc (UNTL) has sought for Federal Government’s approval to diversify into the cement sector of the economy.

The Chairman of CHA Group of Honkong, the parent company of UNTL, Ms Madline Wonh, tabled the request when she led a delegation of the management team on a courtesy visit to the Minister of Trade and Investment, Olusegun Aganga.

She informed the Minister of the desire of the company to diversify into cement production on a smaller scale in Kogi State hoping that the government will provide incentives especially in granting the company “Equipment Import” duty free status to bring in production machines into the country.

Wonh said that the company was facing a lot of infrastructure problems and shortage of raw materials for their factory.  She called on government to intervene to facilitate availability of right quality cotton in the country to enable the company reach their target and take advantages of the export market.

Responding, the Minister assured that the ministry will look into their request based on the fact that the Federal Government has been promoting backward integration policy in the country.

He recalled that the backward integration policy of the government has resulted in increased cement production to 10.6 million in 2010, adding that additional 8.6 million was being expected by the last quarter of this year. “The policy has been extremely successful and we will leverage on that,” he stated.

On the issue of infrastructure and raw materials, the Minister said: “We are aware of most of your complaints and we are working on it. The textile sector is a big employer of labour and we are speaking with the Ministry of Power on Industrial Power as well as Ministry of Agriculture on the right quality of cotton.

We have investors’ friendly environment and where we are lacking we want to share your experiences and your input to make it better”.

Aganga said the job of the ministry was to ensure that policy of government did not make it difficult for stakeholders to have access to quality cotton at the right price adding that the Federal Ministry of Agriculture was focusing on facilitating the right quality of cotton in the country.

He disclosed that he has received a number of complaints from stakeholders in the sector and that the Ministry was working on addressing those issues raised by stakeholders in order to create an enabling environment for the textile sector to thrive.

UNTL has been investing in the economy for the past 50 years. The company is one of the beneficiaries of the Federal government’s N100 billion Cotton Textile and Garment Industries Revival Scheme being managed by the Bank of Industry (BoI).