The Ondo State Government has entered into a Public-Private-Partnership agreement with ZMP Industrial Limited for the establishment of a 600-tonne per day capacity float glass factory in Igbokoda, Ilaje Local Government Area of the state.
Gov. Akeredolu disclosed this in his office on Thursday while receiving German investors from the Horn Glass Industries, led by the Chief Executive Officer, Mr Stephan Meindl.
The News Agency of Nigeria (NAN) recalled that the technical partner for the project, Horn Glass Industries, built the state-owned Oluwa glass over 35 years ago.
Akeredolu said there was no better company to establish a glass factory in the state than the Horn Glass Industries having been involved in the establishment of Oluwa glass over three decades ago.
He told his visitors: you are 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.
“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 stifle anyone who is interested in developing the state. Our participation will be minimal, so as to make it effective.
“Time is of 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 35years,” he said.
The governor decried the importation of glass into the country despite the huge availability of the needed raw materials for its production in the Sunshine state.
He recalled that when the the now moribund Oluwa glass was functional, it was supplying the then Peugeot glasses for windscreen and mirror as part of the production of its vehicles.
Mr Stephan Meindl, the Chief Executive Officer, Horn Glass Industries, his firm was ready to establish the glass factory with modern technology and unwavering commitment.
The Secretary, 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 was endowed with silica sands, the raw material needed for glass production.
“We need to bring in high-net-worth investors to actually collaborate with the state to develop our silica resources 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 is having the stake of over 20% while the investor, ZMP Industrial Ltd. has 80% and ZMP Industrial Ltd. is also working in collaboration with a renowned technical partner called Horn Glass Industries.
“That the technical partner, Horn Glass Industries was the one that built Oluwa glass and now they are coming to build a new green field glass factory and because it is a joint venture and we have a Special Purpose Vehicle (SPV), to drive it.
“It 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 jobs, expand our revenue base.
“It is a great deal that is actually 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.(NAN)
