Nigeria’s local auto assembly plant, ANAMMCO being managed by Transit Support Services has come alive after many years in limbo, thanks to the decision of the Aliko Dangote group of companies to invest about N63 billion in a purchase order for the auto assembly company’s products.
Africa’s richest man holdings have bought a total of 4,000 Shacman trucks assembled by the company in Enugu since the resuscitation of the plant by its new owners in a bid to boost local economy and encourage patronage of locally produced goods.
A statement by Transit Support Services Limited, assembler of Shacman vehicles in Nigeria said Dangote Group has taken delivery of additional 400 Shacman trucks assembled in Enugu, Nigeria.
The Head of the Public Relations and Media at the Transit Support Services Limited, Iyere Ikhide, said that so far the Dangote Group had bought about 4,000 units of the truck from the firm since the entry of the brand into the country in 2016.
It stated that the Dangote-Shacman partnership led to the resuscitation of the ANAMMCO plant in Enugu.
The company described Dangote as the biggest customer of the Enugu-based auto assembler, noting that the partnership had resulted in the provision of more jobs for many youths; rejuvenation of the Onne Port in Rivers State and the attendant economic benefits.
“Following the partnership deal and commitments to quality, the biggest customer of Shacman brand in Nigeria, Dangote Group, has taken delivery of additional 400 units of Shacman trucks.
“Dangote Group has since the entrance of Shacman vehicles into the Nigeria market through Transit Support Services Limited as Shacman Nigeria six years ago bought over 3,500 units of the brand.
Last year, Dangote’s company entered into an agreement with the local automaker Transit Support Services Limited to purchase 3,500 trucks worth N63 billion from the local plant.
The purchase order by the Dangote group represents over 90 percent of the production capacity of the Enugu-based vehicle plant.
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The trucks are to be deployed by the Dangote group to its refinery plants in Lekki, Lagos and the construction firm currently working on the Apapa-Oshodi-Lagos old toll gate road.
The indirect investment of Dangote in the local truck assembly plant has also improved the economy in the southeast part of the country with the project keeping busy the Onne port, which was dormant for many years.
The Onne port, one of the many seaports in Nigeria that has become dormant due to lack of patronage is now used for the delivery of vehicle components supplied to the ANAMMCO plant by its partner from China, Shaanxi Heavy Duty Automobile Import & Export Company.
Frank Nneji, CEO of Transit said the company’s partnership with Dangote Group has been of tremendous benefit for the people in the South-East. “For more than seven years, this place was shut down.”
Analysts said the involvement of Dangote Group in local productions of various commodities such as Cement, Sugar, Flour and other agro-allied products has contributed to the capacity of the country to conserve foreign exchange.
Recently, the International Monetary Fund (IMF) said the Dangote refinery, which is slated to start production next has the capacity to meet local demand for fuel and export the surplus to earn forex for the country.
The IMF also said the advent of the refinery will help Nigeria improving the Current Account balance.
“With crude oil for local refining not subject to the OPEC quota, the refinery also has the potential to catalyze more domestic crude oil production and boost GDP growth,” the IMF stated in its report on the Nigerian economy early in the year.
Last week, the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele flagged off the $500 million Dangote Sugar project, which is expected to commence production by 2023.
Emefiele thanked Dangote for supporting the government’s backward integration programme and described the 60,000-hectare sugar complex as a big project that is unprecedented.
“This is four to five times bigger than the sugar project Buhari commission in Niger State two years ago,” Emefiele said, adding that the factory would create jobs and increase revenue for the state as well as boost its economic viability