Flour Mills of Nigeria plc said it invested over $200million (about N32billion) in establishing a sugar refinery at Apapa-Lagos through its wholly owned subsidiary –Golden Sugar Company Limited.
The ultra-modern refinery with capacity to produce 750,000 metric tons of refined sugar commenced operation in January 2013 and its top quality sugar is penetrating the market gradually.
“The sugar company has a good revenue earning potential,” Paul Gbededo, group managing director, Flour Mills of Nigeria plc told stockbrokers Friday at the Nigerian Stock Exchange (NSE) during the company’s bell ringing ceremony.
Other notable investments and acquisitions by Flour Mills of Nigeria plc include acquisition of 90 percent stake in ROM Oil Mills Limited, an edible oil manufacturing facility in Ibadan, Oyo State; Commissioning of rice mill at Apapa; and acquisitions of 75 percent stake in Thai Farms International Limited; increase of the area under cultivation in its farm at Kaboji, Niger State from 3,500 to 4,000 hectares.
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Also, the company is embarking on the first commercial planting of imported sugar cane under Centre pivot irrigation at Flour Mills of Nigeria plc sugar estate, Sunti, Niger State –with this, the company said it is on target to develop 10,000 hectares of sugar cane by 2016, boosting domestic sugar production, creating job opportunities, and enhancing shareholders value.
At the close of trading, the share price of Flour Mills of Nigeria plc rose by N0.89kobo to N76.95kobo.
Flour Mills of Nigeria plc is confident that it has good future potentials and would continue to work hard and take strategic decisions to improve its earnings and enhance shareholders value on a sustainable basis.
As part of the actualisation of their long-term strategic business model, the management of Flour Mills of Nigeria plc has recently concluded the merger between the company and two of their subsidiary companies –Nigerian Bag Manufacturing Company plc (BAGCO) and Niger Mills Company Limited.
“In Flour Mills of Nigeria plc, we shall continue to make huge investments to consolidate our food and agro allied businesses and achieve broad diversification for the good of the Nigerian economy and all stakeholders,” he said.
“It will interest you to know that in September 2012, we commissioned our ultra-modern milling complex name “West Mills”, which is a major investment in a new milling system. ‘West Mills’ is a state-of-the-art milling facility built at a cost of approximately $65million (about N10.3billion) to accommodate “Golden Penny” flour’s sales growth for the next five years.
“It houses three mills with a collective wheat grinding capacity of 2,250 metric tons per 24 hours bringing Flour Mills of Nigeria plc total milling capacity to over 8,000 metric tons and making Apapa milling site the largest in Africa and the second largest single flour milling site in the world. The new complex can mill and mix a wide range of flour to a high level of efficiency. ‘West Mills’ has the manufacturing flexibility to meet the demands of a fast-changing consumer environment,” Gbededo told stockbrokers on the trading floor of the Nigerian Stock Exchange.
