British International Investment has pledged $65 million to support the expansion efforts of Indorama Eleme Fertilizer and Chemicals in Nigeria.
This financing agreement is part of a broader $1.25 billion financial package to support Indorama, the largest fertilizer producer in SubSaharan Africa, which will enhance its production capacity and build a new port terminal for export purposes to increase world food production and ensure food safety, according to nairametrics.
The investment is intended to increase the annual production of nitrogenous urea fertilizers from 1.4 million tonnes to 1.5 million tonnes by building a third manufacturing unit in Indorama. Urea is one of the most widely used fertilizers in the world.
The new production facility will be supported by a new container terminal that is currently being built at the site of Indorama in Port Harcourt, Nigeria. The two companies are intended to meet the growing global demand for fertilizers and generate as many as 8,000 job opportunities directly or indirectly.
Commenting on the deal, Group Director of African Operations for Indorama Corporation, Manish Mundra, stated that Line 3 will help Nigeria to become a major player in the international fertilizer market as its export capabilities are going to be significantly increased.
He said, “This landmark financing represents a pivotal moment in Nigeria’s journey towards becoming a major player in the global fertilizer market. With the addition of Line 3, Nigeria is prepared to significantly ramp up its export capacity, thereby enhancing its position as a key exporter of fertilizers to Africa and the world.”
Indorama is also required to achieve a 32% GHG emission reduction target by 2030 and reduce gas flaring at its facilities as part of the financing agreement. This strategy is in line with Nigeria’s commitment to the World Bank-led Global Gas Flaring Reduction Partnership, aiming to cease routine gas flaring by 2030.
