Notore Chemical Industries Plc has intensified efforts on its turnaround maintenance (TAM) program to achieve the 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 production volumes, revenue, and operating cash flows.
Group Managing Director, Notore Chemical Industries Plc, Onajite Okoloko, made this known in the company’s unaudited results for the first quarter ended on December 31, 2020.
He also said Notore recorded a revenue of N3.57bn in the first quarter of 2021.
On the status and merits of the TAM program, Okoloko said, “The program is expected to be completed by 8 March 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 is aggressively pursuing its diversification program in seed and rice production, he said: “Sale of Notore seeds to farmers have 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 fertiliser 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 continued: “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. It is expected that these additional initiatives will further diversify the company’s revenue stream, boost profitability, and consolidate customers’ loyalty.”