By PRINCEWILL EKWUJURU & ESTHER ONYEGBULA

Honeywell Flour Mills Plc said its ongoing expansion project, when fully commissioned in September, will boost its production capacity to 2,600 metric tonnes per day from 1,000 metric tones, representing an increase of 62 per cent.

Speaking at the its annual customers’ forum in Lagos, Mr. Babatunde Odunayo, Executive Vice Chairman, Honeywell, said the increased capacity will enable the company provide consumers with more quality products.

He added that the company’s annual turnover for the 2011 financial year increased to N38 billion from N34 billion in 2010 which indicates a 12 per cent increase”

Odunayo, however explained that, “Government, with very good intention of providing a viable market for cassava flour, has enacted a policy that require flour millers to use ten per cent cassava flour in its production, hence, increasing the price of wheat by 15 per cent. The problem with this arrangement is the lack of cassava flour”.

He, however, lamented the harsh business environment characterized by rising cost of inputs, high energy cost, infrastructural decay and security challenges has made business activities very difficult.

His said, “Despite the state and Federal government’s effort, the deteriorating and congested road network within Tin Can Island port- Apapa Axis  has led to difficulties experienced by transporters and its attendant negative impact on product delivery timing.

“No doubt, with a strategic direction the company over the years has remained focused on providing a wider range of quality products in the food sector for the complete satisfaction of valued customers.”

Also speaking, Mr. Seye Ogunwole, National Sales Manager of the company said, “The award presentation is to appreciate the performance of customers in the last twelve months; as the forum brings stakeholders together under one umbrella to discuss the challenges of doing business, recognize, reward great performances and motivate trader partners as well stakeholders to perform better in the coming year.”