Eleme Petrochemicals commences exports to Europe, Asia, Africa

21-Mar-07

Nigeria’s newly privatised Eleme Petrochemicals Company Limited (EPCL) has commenced export of its products to Europe, Asia and across Africa. Eleme, that was acquired by the Indonesian firm - Indorama Group, specialises in the production of high density polyethylene. Countries to which EPCL export its high-grade HDPE include France, Spain, Italy, Belgium, Portugal, Turkey, India, China, Pakistan, Sri-Lanka, Nepal, Vietnam, Ghana, Tanzania, Kenya, Togo, Egypt, Algeria, Morocco, Cote d'Ivoire and South Africa. To service the domestic industry, besides it office in Port Harcourt, Eleme has opened a warehouse in Lagos, while another would soon be opened in Kano to service the northern market. An aggressive marketing policy by ECPL in the domestic market over the last four months, has helped the company cover 60% of domestic market for HDPE, replacing imports. Production capacity at the EPCL plants has been increasing since November 2006, following the turnaround maintenance (TAM) carried out by the Indorama Group before the complex was re-commissioned Eleme has obtained US$320 million loan package from the World Bank and some Nigerian banks. The World Bank, through its private sector arm, International Finance Corporation (IFC), had endorsed Indorama's 75% equity acquisition of EPCL as well as its comprehensive turnaround of the company to make it competitive and profitable. The World Bank had extended a loan of US$155 million through the IFC to Indorama in furtherance of the transaction and the comprehensive turn-around programme of the company. Stanbic Bank is also collaborating with Fidelity Bank and UBA to raise a loan of US$165 million for Indorama to pursue full capacity utilisation of the complex.