TheCable

Notore Chemical Industries Plc has shut down its 500,000 metric tonnes per annum (MTPA) fertiliser plant in Onne, Rivers state ahead of its turnaround maintenance (TAM).

In a statement issued on Thursday and signed by Otivbo Saleh, the company secretary,  the TAM would restore the plant to its nameplate capacity, thereby improving productivity and profitability.

It added that the maintenance program, which was delayed by the coronavirus outbreak, is scheduled to be completed by March 8, 2021.

“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 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 a sustained daily production output of 1,500MT. Attaining this level of production will guaranty improved cashflow, increase in annual revenue as well as return the Company to profitability.”

Notore, which produces fertilizer for sale within Nigeria and for export to West Africa, South Africa, and Europe, 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 ended September 30, 2020, from a loss of N5.75 billion the previous year.

It has also seen debts rising very fast as the fertilizer marker continues to struggle with its long and short-term financial obligations.