Union Dicon Salt (UDS) on Monday unveiled 100 million dollars expansion programme initiatives aimed at enhancing the company’s profitability level and shareholders’ value.
The company’s Managing Director, Mr Chuka Mordi, said this at the “facts behind the restructuring” meeting at the Nigerian Stock Exchange (NSE) in Lagos.
Mordi said the strategy was aimed at transforming the firm into an integrated food manufacturing and agro-business.
He explained that the diversification programme, expected to be completed within 48 months, would boost the firm’s production capacity in key food areas.
The managing director added that the initiative would make the company to emerge as a national manufacturer and distributor of Fast Moving Consumer Goods (FMCG) and a processor of agricultural products and food ingredients.
He said “management has initiated a 48-month, 100 million strategy aimed at transforming UDS Plc. into an integrated FMCG and
Agri-Business with an initial focus on food and agriculture.”
He explained that the company in June signed an agreement with PNG Gas in Delta State to supply gas to its proposed starch processing plant in Umutu in Delta State.
According to him, the firm has invested in installation of a 10,000 MT PA starch processing plant for the conversion of cassava to starch.
He added that agreements were 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 feed stock supply that may arise from logistics.
He said that investment was ongoing to scale up new operations that the company had acquired in view of the current state of UDS’s assets and infrastructure.
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 had commenced a clear-targeted marketing campaign aimed at renewing public consciousness of the UDS brand. (NAN)