Flour Mills acquires 5,200 hectares of land, units N160 billion as price of the brand new growth undertaking
Flour Mills of Nigeria Plc, a number one model within the meals and agro-allied trade in Nigeria, has introduced the upland acquisition of an extra 5,200 hectares of land in Sunti Golden Sugar Estates situated in Mokwa, Niger state, in keeping with its growth plans.
The firm additionally revealed that the entire projected price to realize this daring plan is about at a minimal of about N160 billion, together with the brand new Sugar mill at Nasarawa.
According to a statement issued by the main agro-allied firm, the acquisition of the land is in keeping with Flour Mills’ dedication to the backward integration technique of the Nigerian Sugar Master Plan (NSMP), and the general development imaginative and prescient of the Sugar trade within the nation.
The new 5,200 hectares of land acquired by the flour miller will increase the entire land measurement of Sunti Golden Sugar Estates to about 22,000 hectares of land, with the entire land space below cane cultivation now coming as much as 15,000 hectares.
What it’s best to know
The information of the land acquisition by Flour Mills comes weeks after claims of involvement in price-fixing and arbitrary collusion to create sugar shortage had been made towards the corporate in a letter written by the founding father of the BUA Group, Abdulsamad Rabiu to the Minister of Industry, Trade and funding, Niyi Adebayo.
Abdulsamad in his letter added that among the many three gamers within the Nigerian sugar trade, solely BUA Sugar Refinery has made critical funding dedication to the backward integration technique of the Nigerian Sugar Master Plan (NSMP).
Why this issues
Flour Mill’s funding within the sugar trade highlights the significance of the sugar worth chain, and the corporate’s assist and dedication to the Government’s general technique of elevating the profile of agriculture whereas diversifying the economic system.
Hence, the growth plan of the Golden Sugar Company, a subsidiary of the Flour Mills of Nigeria Plc is an effort to immensely enhance the manufacturing capability of the sugar property, in a bid to drive the attendant growth of the sugar manufacturing capability of the mill, as the corporate can have over 25,000 hectares of land below cane.
Other proposed funding on this line will be sure that manufacturing is ramped as much as roughly 250,000 tonnes of sugar per yr. This will considerably enhance native sugar manufacturing, cut back dependence on meals imports, and save the nation’s overseas change.
Expansion plans by different gamers within the trade
- BUA Group lately disclosed that it has invested over $300 million in Lafiagi Sugar Company (LASUCO) in Kwara State, which is in a complicated stage to completion.
- LASUCO, which is an built-in milling manufacturing facility that may comprise of a 20,000-ha sugar plantation, a ten,000tcd sugar mill, a 220,000mtpa sugar refinery, 20,000,000 liters every year ethanol plant, and a 35-megawatt energy plant that will likely be built-in into the nationwide grid.
- Dangote Sugar Refinery alternatively revealed that the Company had commenced rehabilitation and growth of the Savannah Sugar Company Limited Sugar Factory at Numan, with a key focus to extend manufacturing capability by 6,000 tons of cane per day (TCD).
- The firm additionally famous that Sugarcane planting has additionally commenced in two different BIP areas. Regrettably, because of group dispute over the land acquired in Niger State, projected actions haven’t commenced in Niger State.