Fertilizer manufacturing company Notore Chemical Industries Plc has shut down its 500,000 metric tonnes per annum (MTPA) plant located in Onne Rivers state ahead of its turnaround maintenance (TAM).
In a signed statement by the company’s Secretary Otivbo Saleh, the purpose of the shutdown is to restore the plant to its original capacity, thereby enhancing productivity and profitability.
The company revealed that the pace of the maintenance project was affected by the coronavirus pandemic, and is expected to be completed by March 8, 2021.
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“The objective of the TAM is to return the Plant to its 500,000MTPA nameplate capacity and improve the reliability index to 95%. Although disruption to global businesses occasioned by the COVID-19 pandemic and its attendant restrictions by Governments all over the world affected the timely delivery of procured spares and the arrival to the site of Vendor Service Men (VSM), the TAM is still on course and barring any unforeseen circumstance, it should be completed on 8th March 2021,” the statement read.
“Upon completion, we expect a significant improvement in the Plant’s reliability index and sustained daily production output of 1,500MT. Attaining this level of production will guaranty improved cash flow, increase in annual revenue as well as return the Company to profitability.”
The company produces fertilizer for the domestic market and also exports to West African countries, South Africa, and Europe. It has continued to record recurring losses since the last economic downturn in 2016.
Huge production costs have swallowed weak revenue, resulting in a loss after tax of N6.39 billion for the full-year ended September 30, 2020, from a loss of N5.75 billion the previous year.
It has also seen debts rising faster than profit as the fertilizer marker continues to struggle with its long and short-term financial obligations.
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