Notore Chemical Industries Plc, has intensified efforts on its Turnaround Maintenance (TAM) programme to achieve nameplate capacity of 500,000mtpa and boost profitability from 2021.
The company has fixed March 8, 2021, as the completion date for the exercise which is expected to significantly increase its current production volumes, revenue, and operating cash flows.
The Group Managing Director and Chief Executive Officer (CEO) of Notore Chemical Industries Plc, Mr. Onajite Okoloko, disclosed this in the company’s unaudited results for the first quarter ended on December 31, 2020.
He also said Notore recorded a revenue of N3.57 billion in the first quarter of 2021.
On the status and merits of the TAM programme, Okoloko was quoted in a statement to have said: “The programme is expected to be completed by March 8, 2021, barring any further interruptions occasioned by the global COVID-19 pandemic emergency.
“The TAM is a critical activity required to improve the plant reliability and increase production output to meet and sustain its 500,000MT per annum nameplate design capacity.
“Once completed, we expect significant improvement 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 improvements in the Company’s cash flows from operations, but also significant increases in revenues annually post-TAM.”
He added: “Our business has been faced with many challenges over the past years. However, Notore has indeed achieved several vital milestones to re-position the Company for a great future. As we look to the future post-TAM, the next phase of Notore’s growth will be focused on diversification, optimization, and profitability.”
Noting that the company was aggressively pursuing its diversification programme in seed and rice production, he said, “Sale of Notore seeds to Nigerian farmers has also continued in furtherance of our corporate vision to be a major contributor to the development of Africa.
“Additionally, while leveraging the Company’s seeds business, robust supply chain and distribution network, Notore intends to expand further into other products such as rice production.
“Production of Notore NPK fertilizers has begun to ramp up with major local market introduction achieved during the period under review, which will lead to substantial NPK production and sales this 2021 financial year.”
He added: “During the dry season, we commenced the pilot program for Notore Rice, an integrated program which saw the successful completion of rice paddy production. This year, we expect to continue the pilot program followed by a test run of over 5,000 bags of high-quality Notore rice in the market this February.