Ondo partners German firm to establish N162b float glass factory
The Ondo State Governor, Oluwarotimi Akeredolu, has decried importation of glass into the country despite the huge availability of raw materials in the state.
To this end, the Ondo State Government has signed a public-private partnership (PPP) agreement with the ZMP Industrial Limited for the establishment of a 600 tonnes per day capacity float glass factory in Igbokoda, Ilaje Local Government Area of the state.
The governor recalled that when the moribund Oluwa Glass was functional, it was supplying the then Peugeot glasses for windscreen and mirror for the production of the vehicles.
Akeredolu disclosed this in his office yesterday, while receiving investors from Horn Glass Industries from Germany led by the Chief Executive Officer, Stephan Meindl.
The CEO/Chairman, ZMP Industries Limited, Rotimi Ogunsanmi, was also in the investors’ entourage. While receiving the investors in his office, Akeredolu said there was no better company to establish a glass factory in the state than Horn Glass Industries, having been involved in the establishment of the Oluwa Glass over three decades ago.
“You were involved with Oluwa Glass and you are the one that built it. I don’t think there is a better company to start a new state-of-the-art Glass Company than you. The importation of glass into this country is unfortunate. Oluwa Glass was the one supplying Peugeot windscreen and glass. But government involvement in Oluwa Glass killed it.
“But today, we have equity participation. We are not going to stiffen anyone interested in developing the state. Our participation will be minimal to make it effective,” he said.
Governor Akeredolu charged the investors to be time conscious, adding: “Time is of the essence. We are running against time. Please start now. Undoubtedly, we are waiting. The state will be glad to have a glass factory back after 35 years.”
The Chief Executive Officer of Horn Glass Industries, Stephan Meindl, said his firm is ready to establish the glass factory with modern technology and unwavering commitment.
The Secretary of Ondo State Development and Investment Promotion Agency, Emmanuel Omomowo, who explained the process and terms of the Memorandum of Understanding (MoU) signed, said the Sunshine State is endowed with Silica Sands which has the raw material needed for the glass production.
He said:”We need to bring in high-net-worth investors to collaborate with the state to develop our silica resource and the value of this investment is over 250 Million Euros and when it is converted to Naira, it is over 162 Billion Naira.
“The State Government in this project has a stake of over 20 per cent while the investor, ZMP Industrial Ltd. has 80 per cent and ZMP Industrial Ltd. is also working in collaboration with a renowned technical partner called Horn Glass Industries.”
“The project will create a lot of employment; we can talk of investment value that is worth over N160 billion that is coming to the State. It will also have other multiplier effects within the State, it is going to enhance our economy, it is going to create job employment, expand our revenue business.
“It is a great deal that is coming to the State. And going through their profiles, they have the technical expertise. That is why we are talking of project reference that Oluwa Glass developed over 30 years ago which is going to be built again with newer technology, with a better approach. So, it is a good deal for the State,” he said.