Abia to Revive 5 Moribund Industries, Takes Over Star Paper Mill from AMCON
Boniface Okoro in Umuahia
The Abia State Government has listed five moribund industries it is planning to revive in a major economic move aimed at boosting manufacturing and job creation.
The industries, majority of them located in Aba, the commercial hub of the state, are Star Paper Mill, Textiles Mills, International Equitable Associates, Afro Beverages and Ogwe Golden Chicken.
The Dr. Alex Otti-led administration in Abia, at inception, initiated moribund industries revival policy aimed at bringing back to life, dead industries scattered across the state, to drive industrial rebirth and revitalize production of goods and services.
Already, the state has successfully repossessed the moribund Star Paper Mill, Aba, from Asset Management Corporation of Nigeria (AMCON), signaling commencement of implementation of the moribund industries revival agenda.
The repossession of Star Paper Mill was finalized through a buyback deal with the state government paying N2.5 billion to AMCON.
Apart from Star Paper Mill, the government has also paid N500 million as it negotiates to take over and revive Afro Beverages, Aba.
At the official handover of Star Paper Mill held at Government House, Umuahia, at the weekend, stakeholders noted that revival of Star Paper Mill would create over 5, 000 jobs, catalyze economic development and growth which ultimately would increase Abia’ Gross Domestic Products (GDP).
Star Paper Mill, a private concern with its head office in Aba and a branch factory at Owerrinta, Isiala Ngwa South local government area, was established in 1976 by the late Abiriba-born entrepreneur, Chief Nnanna Kalu.
It had many production lines, including exercise books, and employed thousands before it went under.
Abia State Governor, Dr Alex Otti, said that the recovery of the company was in fulfillment of his campaign promise to revive moribund industries in the state, revealing that it was sold under questionable circumstances, but with his intervention and the cooperation of AMCON, the company has been recovered.
Dr. Otti added the company which acquired Star Paper Mill has been refunded the payment it made, assuring that government would ensure the company becomes profitable, productive and generates employment.
“One of the things I promised our people during my campaigns was to bring back what they call moribund industries and Star Paper Mill was one of them.
“Like I have said in the past, our intention is not to run Star Paper Mill, our intention is to de-risk it, lead from the front, and then bring the private sector to come and take charge.
“We are not acquiring to keep; we are acquiring to give you (the private sector). We have taken it, so, we can now call you and say this is the way we want to run it,” Gov. Otti told his audience.
The governor said reacquisition of State Paper Mill was a challenge to private sector, urging the Umuahia Chamber of Commerce, Industries, Mines and Agriculture (UCCIMA) and Aba Chamber of Commerce (ACCIMA) to rise to the challenge of providing cable private sector operators/investors that would acquire and run the company.
He made it clear that government has no intention of running the company, except to revive and handed it over to capable private investors.
Commissioner for Industry, Small and Medium Enterprises (SMEs), Mazi Mike Akpara, described the handover as “the return of life and hope to industries” and a major step towards Abia’s industrial resurgence.
Akpara disclosed that the state government has concluded the acquisition of Star Paper Mills Ltd with a ₦2.5 billion payment, and has equally made an initial ₦500 million deposit for Afro Beverages Limited, Aba.
Earlier, the Executive Director of AMCON, Dr. Aminu Mukhtar Dan’amu, had said that the factory, which had fallen into disuse due to financial distress, represents more than an asset, describing its acquisition as a “milestone for the state’s industrial development.”
“Today, we are proud to transfer this preserved industrial giant to a government committed to its revitalization-acquisition factory as a “milestone for the state’s industrial development.”
He noted the handover underscores the importance of federal-state collaboration in preserving strategic national assets and boosting economic development; and commended Governor Otti for his commitment to acquiring the factory.
The hand over was witnessed by the Presidents of ACCIMA, Mazi Jude Nwosu, and UCCIMA, Elder Dr. Catherine Chika Igbokwe, respectively, among other industry operators, commissioners and other senior government figures.
