The Group Managing Director of Notore Chemical Industries Plc, Ohis Ohiwerei said the company has set a target to produce 500,000 metric tonnes of fertilizer output after it has completed the Turn Around Maintenance (TAM) programme.
According to him, Notore is pleased to announce the successful completion of the TAM programme, a massive undertaking that involved vendors, parts suppliers, VSMs, OEMs from across the globe and best-in-class engineering companies.
Despite interruptions due to the COVID-19 pandemic which directly impacted the original anticipated completion date for the TAM, the company remained resilient and overcame the challenges to deliver a successful TAM.
Ohiwerei stated that the completion of the TAM 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.”
In a statement, he affirmed 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.
Ohiwerei also revealed that during the period under review, the company successfully completed phase one of its rice pilot program, which resulted in the production of 5,000 50kg bags of high-quality Notore rice. He added that the second phase of the Notore rice pilot programme has commenced and it is expected to result in the production of 715MT of rice paddy.
The GMD is optimistic that these additional initiatives will further diversify the Company’s revenue stream, boost profitability, and consolidate customers’ loyalty.
According to him, 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. He also noted that 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 substantial.