Union Dicon to raise capacity to $212bn by 2020

Stories By Amaka Ifeakandu
Lagos

The management of Union Dicon Salt Plc says it projects to hit over $212 billion capacity by 2020.
The management of the company  said it  has the capacity to actively participate in the over $140 billion food and consumer market opportunityin West Africa.
Managing Director of the company,  Mr. Chika Mordi who disclosed this while addressing dealing members at the Nigerian Stock Exchange said  this market  includes pre-processed, and processed consumer products, present a compelling entry opportunity to UDS Plc.

He sa id that the  management has initiated a 48-month, $ 100 million strategy aimed at transforming UDS Plc into an integrated FMCG & Agri – Business with an initial focus on food and agriculture.
He explained that the  models for the company’s new plan are  building production capacity in key food areas.
become a national manufacturer and distributor of FMCG in foods Plan,  build an Integrated supply chain and be a processor of agricultural products and food ingredients. In order to achieve new plans for the business, he said  the key objective was  to diversify into new business lines, and the distribution of all these products regionally.
The structure, according to him was modeled in line with what the company visualised as the optimal strategy for a revitalised, more vibrant, and highly profitable firm.

The management of Union Dicon also  said it has signed an agreement with PNG Gas to supply gas to its proposed starch processing plant in Umutu area of Delta State.
The company also announced that it has attained the final stage in its negotiation to acquire the second largest rice farm in Nigeria.
Mordi explained that the firm has invested in an installation of a 10,000 MT PA starch processing plant for the conversion of cassava to starch.
He added that agreements have been signed with GEA Westfalia and Fortescan Limited 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 explained that despite the current state of the Company’s assets and infrastructure, investment is ongoing to scale up the new operations that the business has acquired, adding that “The company has commenced a clear-targeted marketing campaign aimed at renewing public consciousness of the UDS brand.”
Also, the Chief Executive Officer of NSE, Mr Oscar Onyema said “Union Dicon was out of operation between 2008 and 2013, during these period the company failed to meet its post listing obligation and the market has limited information on its activities.”