Blue Seal Energy Group (BESG) has announced plans to construct a-35,000 metric tons per annum capacity chemical production plant, at an estimated cost of $12.5 million plant in Ibeju Lekki, Lagos.
At the project groundbreaking ceremony, the Chief Executive Officer of Blue Seal Energy, Doyle Edeni, said the facility was being constructed to bridge the massive importation of chemicals into the country and also bridge the gap between demand and supply of industrial chemicals, water treatment chemicals, and oilfield chemicals.
Edeni, added that the first phase of the 35,000 metric tons per annum chemical plant would cost about $12.5 million with a potential to expand and would also solve Nigeria imported chemicals to the tune of $1.4 billion in 2019 alone, out of which his company was responsible for $5 million yearly.
“We want to help change the narrative of our country from being an import-dependent to manufacturing and export-based country,” Edeni said.
Edeni explained that 30 percent of the funding would be sourced locally, while 70 percent would be sourced outside the country.
He lamented that the uncertainty in the country’s business environment has forced many of its competitors to shut down, adding that the inability to project the industry needs for chemicals, especially for refineries and other petrol chemical plants has further compounded their woes.
Edeni, added that citing the plant in the same area with Dangote refinery and fertiliser plant was strategic, saying, “Dangote Refinery will be our major client considering his proximity to our plant.”
He noted that the company plan to employ about 500 people in the first phase of the project, adding that the number would be raised to 1,000 in due course.
“The difference this project will bring into our operation is that we don’t have to suffer losses due to expired chemicals because they are very costly for you to detoxify,” Edeni said.
Edeni, listed the socio-economic benefits of the chemical plant to Nigeria as improved access to industrial chemicals to boost local production; support to the federal government’s campaign for indigenous production of goods and services; and creation of secondary industry and indirect jobs for suppliers of raw materials.
The BESG boss said the need to establish a factory became compelling because of all these above-listed constraints, coupled with logistics issues which prolong the arrival of chemicals into Nigeria up to three or more months.
According to him, the associated cost required to dispose of these chemicals had become a huge burden because such could not be dumped into the environment without detoxifying same.
Source :BusinessDay.
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