By Ignatius Chukwu
Indorama Nigeria is billed to create 8,000 new jobs by the construction of a new fertilizer line in Eleme, near Port Harcourt, Rivers State.
The new line is to be financed through a deal by the African Development Bank (AfDB) and Indorama Eleme Fertiliser and Chemi cals Limited.
The AfDB announced this last week through its website.
Details:
According to the statement, the loan will enable Indorama to increase its fertiliser production and develop a port terminal for exports.
The statement also said that the loan would support food production and food security across regional and international markets while fostering job creation in Nigeria. It said that the expansion would include the development of a third urea fertiliser production line and a new shipping terminal at Indorama’s facilities in Port Harcourt. “The new production line is expected to have an annual capacity of 1.4 million metric tons of urea, one of the most widely used fertiliser worldwide.
“Indorama’s two operational urea fertilizer lines serve Nigeria’s domestic market.
“It supports the country’s agricultural sector, which accounts for a quarter of its Gross Domestic Product (GDP) and employs about a third of its labour force.
“The new production line and terminal, which will help meet growing global demand for fertilizer, is expected to create up to 8,000 direct and indirect jobs in Nigeria”, the statement said.
The statement also quoted the acting director of industrial and trade development department, AfDB, Ousmane Fall, as commending the partnership. Fall said the bank was proud of its continued partnership with Indorama, the IFC, and other lenders on this critical project.
He said the partnership aligned with the bank’s strategic priorities to feed and industrialise Africa, while generating significant development outcomes in Nigeria. Meanwhile, Manish Mundra, group director for Africa, Indorama Corporation said the establishment of the fertiliser plant underscored Indorama’s unwavering commitment to Nigeria’s industrial growth, economic diversification, and leveraging its strategic geographic location.
“This landmark financing represents a pivotal moment in Nigeria’s journey towards becoming a major player in the global fertilizer market. “With this third line, Nigeria is prepared to significantly ramp up its export capacity, thereby, enhancing its position as a key exporter of fertiliser to Africa and the world.
“Furthermore, the establishment of this fertiliser plant will not only address critical issues such as broader food security but will also stimulate agricultural growth and create employment opportunities in Nigeria,” he said.
The AfDB’s loan follows a strategy to support investment in private sector development to promote the growth of the real sector.
Loan details:
The $75 million loan is part of a $1.25 billion facility arranged by IFC. The financing package includes a $215.5 million loan from IFC’s own ac count, a 94.5 million dollars loan through the Managed Co-Lending Portfolio Pro gramme (MCPP), and $940 million in parallel loans mobilised from other devel opment finance institutions and commercial banks. Some of the banks include the AfDB, Bangkok Bank, Bri British Internation al Investment, Citibank, Deutsche Investitions- und Entwicklungsgesellschaft (DEG), DZ Bank, Emerging Africa Infrastructure Fund (EAIF) and Rand Merchant Bank
