Union Dicon Salt Plc (UDS) has unveiled a $100 million expansion strategy, aimed at transforming the firm into an integrated food manufacturing and Agro – business to boost profitability.
Under the diversification scheme, which would be completed within 48 months, the firm plans to build production capacity in key food areas, become a national manufacturer and distributor of fast moving consumer goods and an integrated supply that would enable it become a processor of agricultural products and food ingredients.
Already, the company, had, last month, signed agreement with PNG Gas in Delta State to supply gas to its proposed starch processing plant in Umutu in Delta State, as continuation of its strategic plan to becoming a fully integrated firm.
Speaking during the company’s ‘Facts Behind the Restructuring’ in Lagos on Monday, the Managing Director of the company, Chuka Mordi explained that the firm has invested in an installation of a 10,000 MT PA starch processing plant for the conversion of cassava to starch.
According to him, the company has also invested in Alape SCPZ investment to increase starch processing capacity to over 90,000 MT PA five years, with enzymatic conversion to maltose syrup.
He added that agreements have been signed with GEA Westfalia and Fortescan Ltd for plant installation and commissioning.Mordi pointed out that the strategy was to create an integrated processing business by controlling output from root to final product, in order to maintain strict quality and ensure feedstock supply that may arise from logistics.
Ite“Union Dicon Salt Plc. was a successful salt processing and distribution company, and a highly regarded brand, in Nigeria; The UDS brand retains significant potential: brand recognition, logistics, and goodwill.
“As a strategic investor in the company, CBO commenced plans in 2014, to revive UDS Plc, an opportunity to diversify the business (operations, & products) for increased competitiveness.
“UDS has the capacity to actively participate in the over USD 140bn food and consumer market in West Africa, that is forecast to rise to over USD 212bn by 2020. This market, which includes pre-processed, and processed consumer products, present a compelling entry opportunity to UDS Plc.
“Management has initiated a 48-month, USD100m strategy aimed at transforming UDS Plc. into an integrated FMCG & Agri – Business with an initial focus on food and agriculture.”
In view of the current state of UDS’s assets and infrastructure, he explained that investment is ongoing to scale up the new operations that the business has acquired.He noted that key investments under this basis are assets that guarantee quick gains, and that will ensure immediate cash flow generation.
He added that the company has commenced a clear-targeted marketing campaign aimed at renewing public consciousness of the UDS brand.
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