Notore Chemical Industries Plc said it has set a target to produce 500,000 tonnes of fertilizer output after the company completed its Turn Around Maintenance (TAM) programme.
In its unaudited second quarter report ended March 31, 2021, that was signed by the Group Managing Director of Notore Chemical Industries Plc, Ohis Ohiwerei, the company said despite suffering several setbacks occasioned by the coronavirus (COVID-19) pandemic, it remained resilient to deliver on its programme.
According to him, “We are pleased to announce the successful completion of the TAM programme. This was a massive undertaking that involved vendors, parts suppliers, VSMs, OEMs from across the globe, and best-in-class engineering companies. Despite experiencing further interruptions to our supply chain and logistics occasioned by the global COVID-19 pandemic emergency, which directly impacted the original anticipated completion date for the TAM, the company remained resilient and overcame the challenges to deliver a successful TAM. This signifies a key milestone to repositioning the Company and turning around its fortunes.
He added: “The completion of the TAM ushers in a new phase in the Company’s growth with a focus on optimisation and profitability. Notore is committed to continuous improvement. We expect a major upturn in the plant’s reliability and production output to meet and sustain its 500,000MT per annum nameplate design capacity.
“Achieving this level of production output will not only lead to significant increases in the Company’s cash flows from operations, but also substantial increases in revenues annually. It is worth noting that a sizeable portion of the additional post-TAM revenue will contribute straight to the Company’s bottom line, a major key to returning the Company to profitability.”
He said in a statement that the production and sale of Notore NPK fertilizer into the domestic market also contributed to the revenue, adding that with the ramp up of NPK production, Notore expects substantial NPK production and sales during the 2021 financial year.
“Sale of Notore seeds to Nigerian farmers has also continued in furtherance of our corporate vision to be a major contributor to the development of Africa. Additionally, while leveraging the Company’s seeds business, robust supply chain and distribution network, Notore intends to expand further into other products such as rice production.
“During the period under review, we successfully completed phase one of the Notore rice pilot program, which resulted in the production of 5,000 50kg bags of high-quality Notore rice. We have commenced the second phase of the Notore rice pilot program, which is expected to result in the production of 715MT of rice paddy. These additional initiatives will further diversify the Company’s revenue stream, boost profitability, and consolidate customers’ loyalty,” he said.
He said the company believes that the domestic fertilizer market is yet to reach its full potential, as the consumption of fertilizer per hectare of arable land in Nigeria is still far below the 200kg per hectare recommended by Food and Agriculture Organisation, noting, “Furthermore, the demand for Urea and compound fertilizers, such as NPK, from the West African markets and neighbouring countries bordering the northern part of the Country is also substantial.”
Culled from Thisday