By Peter OBIORA investadvocate

Dec 24 2010 03.02 GMT

Lagos (INVESTADVOCATE)-PZ Cussons Nigeria Plc (PZ) operating in the Conglomerates sub-sector of the Nigerian Stock Exchange (NSE) is set to invest $27 million (17 million Pounds) in a joint venture with a Singaporean firm.

 

This was contained in a notice from the Company to the Stock Exchange Thursday December 23 2010 in Lagos Nigeria and made available to investadvocate.

 

The company has notified the Exchange of its plans to expand its presence in the food and nutrition category in Nigeria.

 

According to PZ, a food ingredients business is being established as a joint venture with Singapore based Wilmar International Limited, Asia’s leading agribusiness group.

 

PZ affirmed that the intention is to develop a range of branded products including edible oils and nutritional spreads. The joint venture will secure the availability, quality and cost of the oil ingredients through the construction of a palm oil refinery in Nigeria, expected to be completed within two years.

 

“PZ Cuzzons’ share of the investment in the joint venture will be approximately $27m (17 million pounds) over two years. Following completion of the refinery, the joint venture is expected to be earnings enhancing in its first full year of trading” the Company affirmed.

 

As earlier reported by investadvocate, his Excellency, Chief Haresh Aswani, Honourary Consul of the Republic of Singapore in Nigeria has confirmed Nigeria as one of the top five countries in Africa as an emerging world business frontier.

 

According to him, the current level of Singaporean Companies investment in Nigeria is worth about $500 million at the moment “and how much more will come, depends on how attractive Nigeria makes it for them” Aswani said.