The partnership between Richbon and Xiamen XGMA International Trade Company Limited is expected to attract $40 million investment, 5,000 jobs among other benefits, Sahm Yap, vice president, Xiamen XGMA International, told a group of journalists, BusinessDay was there. Excerpts:
Why did you chose Nigeria as an important market for Richbon, XDMA partnership?
One of the reasons for our visit to Nigeria is to re-assess the progress thus far on the heavy-duty construction and equipment assembly plant. When we signed the franchise last year with the XGMA, one of the top in agenda was to have made-in-Nigeria construction equipment, which will be the first of its kind. In no distance time, the discussion will get to the peak, because this year we have been able to sign MoU in line with government’s policy.
The reason is that Nigeria and China has a good and longtime relationship. Since we incorporated with Richbon last year, I haven’t been here. This time, I am in Nigeria because we are discussing on the assembly plant. Beside the reason of the assembling plant, we will discuss business in Nigeria and other business relative to manufacturing. We pay a very high attention to this visit because Nigeria is an important market for us. We plan to build Nigeria as a centre for West Africa in sales, after sales and manufacturing.
What are the reasons for XGMA, Richbon partnership?
XGMA is a top earth-moving equipment supplier in China, even in the world, hence, it took us a very long time to find partner in Nigeria. When we met Richbon last year, we found that we have a lot of things in common; like Richbon’s concept of doing business, finance and capability can match our expectation and this is why we choose Richbon Nigeria Limited. XGMA, founded in 1951, is a Chinese national large-scale backbone enterprise, specialises in manufacturing of wheel loaders, excavators, road construction machinery, forklift trucks and mini-machinery.
What would be the benefits of this partnership to Nigeria’s economy?
First, our machines are of very good price and quality. Directly, we can bring in good machine with favourable price into Nigeria, especially in the construction sector.
And, through our corporation with Richbon, we will create more job opportunities and also attract more investment into this country.
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Meanwhile, when the chairman/CEO of Richbon Group, CJ Chike Mounagolu, met with XGMA construction equipment, they have been able to study the technology and find out that it is the best and a top Chinese construction equipment. We took time to re-assess the quality; it came out to be perfect. What makes it perfect is the kind of quality technology being use, like the Commis, Isuzu and Perkins engines, which are pretty more the same people are familiar with here.
What attracted our attention is the honest way of doing things; their response to customers, excellent delivery and their commitment to ensure that we are not only after the money but to ensure that users get values for their money. We have a lot of packages to unveil in no distance time. The core reason why we are in Nigeria is to re-assess the progress made so far in the assembling of the plant, which is top in the agenda. This is an investment that will attract over $40 million, and by the time the plant is installed it will create more than 5,000 jobs in Nigeria. We are targeting the first 12 to 18 months to employ 40 percent, which is 2,000 employees, while at the conclusion we must have created more than 5,000 jobs in line with government policy.
When is the assembly plant coming on stream in Nigeria?
Since this corporation is relative to the technical aspect, on our side we are ready to transfer the technology to Nigeria. Secondly, we have signed a MoU with Richbon on this corporation. As the Chike Muonagolu, chairman/CEO, Richbon Group, told us that the MoU between Richbon and the state government was making a tremendous progress.
According to Richbon, they are awaiting approval from the National Automotive Industries, while the government of Anambra State has demonstrated the willingness. A MoU would be signed very soon for the location of the plant, which Anambra State government would give the land as equity. As soon as the MoU is ready in the next one week, we review it and the parties involved would be giving time to study it and once it is signed the assembling of the plant will commence.
Where is the location of the automobile plant and any approval from government?
We are awaiting approval from the National Automotive Industries, while the government of Anambra State has demonstrated the willingness, and a MoU would be signed very soon. We are looking at the Anambra State government collecting the land as equity.
How unique is XGMA Richbon automobile?
The most preferable thing for our machines is the favourable price. The price is wonderfully competitive that we can assure you, but most important is the quality, which we would be offering to Nigeria. I will tell you that one of the local content industries Richbon is going to unveil would be all XGMA, which are all tested products. These are all excellent products with one-year warranty, sale and after sale service.
The investment XGMA and Richbon want to unveil in Nigeria is part of our effort to make XGMA product a household name in Nigeria that will be government-contractor friendly user product, which will be made-in-Nigeria. The spare parts would be made here in Nigeria, which will safe the cost of freighting such parts from abroad. We have strategies to make things easier for contractors; lease the equipment to them and give an option of buy backs. This means that if you buy the equipment, after you have finished with the equipment, you can sell it back to us. Richbon and XGMA are coming with a lot of goodies, with plans to get all the contractors of the user of construction equipment in Nigeria and unveil it to them, which is the first of its kind in Nigeria.
