Promasidor Nigeria Limited

completed

Promasidor Nigeria Limited (“Promasidor” or “the company”) is an existing food and beverage processing company based in Lagos, Nigeria. The company manufactures powdered milk, food seasoning and packaged tea leaves. The project consists of an A loan of up to US$25 million to support the modernization of Promasidor’s operations in Nigeria. The total project cost is estimated at US$25 million. The project will involve modernization of equipment for bouillon cube seasoning; extension of the dairy product portfolio, and automation of the powdered milk, choco and coffee production lines. Promasidor is located on Cowbell Way in Isolo Industrial Estate, Lagos. Access to the site is via Isolo Industrial Estate Road which links to Apapa-Oshodi Expressway. The facility is surrounded by other manufacturing companies - food and beverage, steel fabrication and building materials production. Although originally designated as an industrial estate, Isolo Industrial Estate also houses commercial enterprises and it is noted that there are informal residential dwellings within the estate at the rear end of the Promasidor facility. The Promasidor factory sits on a 6.61 hectare plot of land and consists of the main production area; raw materials warehouse; storage facilities; an administrative block; finished goods warehouse and loading bay; a truck parking area; a generator house; vehicle repair workshop; staff amenities; and an effluent treatment plant (ETP); all occupying approximately 60% of the site. The modernization project will not involve any expansion of the building infrastructure. Promasidor currently operates a primarily dry production process; the manufacturing process consists of mixing/blending of raw materials, filling and packaging. The company runs four separate factory units within its premises; each factory houses a different product and all factories are operated concurrently. The four factories are - i) ‘onga’ factory which produces ‘onga’ food seasoning; ii) ‘choco’ factory which produces ‘cowbell’ powdered chocolate milk brand; iii) milk factory which produces ‘cowbell’, ‘loya’ and ‘miksi’ powdered milk brands; and iv) tea factory which produces ‘top tea’ tea bags. All products are sourced/supplied in bulk (except for Infant Formula, which is imported as a final product) and processed and packed in different size configurations, except for the seasoning products which are manufactured from local and imported raw materials. Milk powder is imported from European/New Zealand suppliers and dried tea leaves are imported from Kenya. Select materials for seasoning and flavored milk are sourced locally.As at the time of IFC’s site visit in September 2015, the modernization project had not commenced; this is expected to commence in 2017.