Indorama Eleme Petrochemical Limited (IEPL) plans to invest about $4.4 billion by 2019 to enable it expand operations and become the largest petrochemical company in Africa, its managing director, Manish Mundra, has disclosed.
But the company has so far injected some $575 million since 2006 privatisation, increasing production capacity from just four percent pre-privatisation to 77 percent.
Briefing members of the Senate Committee on Privatisation led by its chairman, Olugbenga Obadara, who visited the plant in continuation of their oversight tour of privatised enterprises in Rivers State, Mundra further disclosed that the company plans to increase its production to 325,000 metric tons per annum in 2014.
The company, however, is seeking tax exemption from the Federal Government, but unfortunately at a time when the country’s tax to GDP ratio has dropped significantly, putting pressure on government to intensify tax collection drive.
While appealing to the Federal Government for tax exemption, Mundra suggested that the tax regime in Nigeria should be based on the quantum of investment made by a company operating in the country.
Meanwhile, the company has been able to pay out about N33.9 billion as dividend to the Federal Government and Rivers State since its acquisition, Mundra said. N8.71 billion was paid to Rivers State while Bureau of Public Enterprises (BPE) and the Nigerian National Petroleum Corporation (NNPC) got N25.2 billion.
The IEPL MD disclosed that the company also paid about N15.61 billion in taxes to the federal and state governments. These include value added tax, customs duty, withholding taxes and Pay As You Earn (PAYE).
He said the company which is currently the largest integrated olefins producer in West Africa has a workforce of 1,585, which is predominantly Nigerians.
He informed the committee members that as part of plans to diversify, IEPL is constructing a mega-sized fertiliser project comprising 1.4mmtpa nitrogenous fertiliser, a gas pipeline and jetty projects, targeted to be completed in 2015.
“The fertiliser plant will be located within the confines of the existing site measuring 361 hectares and will occupy approximately 38 hectares. The main project components involve 2,300mtpd ammonia plant, 4,000mtpd urea plant, 4,000mtpd urea granulation plant with associated offsite and utilities”, he told the lawmakers.
To sensitise the public on its fertiliser brand, Mundra said IEPL has commenced the importation of Indorama-branded fertiliser which is making steady entry into the Nigerian market.
At Notore Chemical Industries Limited, Onne, the head of projects, Bode Agagu, informed the lawmakers of the company’s plans to increase its production from 500,000 metric tons to 750,000 metric tons per annum and to build a new plant in partnership with a Danish firm.
He said since it took over management of the company, it has successfully carried out a turn around maintenance (TAM) which increased the company’s production by 30 percent.
ONYINYE NWACHUKWU, Abuja