Flour Mills of Nigeria Plc has revealed plans to increase its shareholder value and boost its profitability through the inauguration of its ultra-modern milling facility.

The facility named ‘West Mills’, is a milling facility housing three mills with a collective wheat grinding capacity of 2,250 metric tonnes per 24 hours.

A statement by the company on Monday, quoted the Chairman of the company, Mr. George Coumantaros, as describing it as a significant milestone in the annals of the company’s history.

Coumantaros, who was speaking during the inauguration of the facility, said that the move was carried out in a bid to give shareholders greater value for their investments, as well as to meet the company’s strategic growth aims.

He said that the company had commenced an ambitious programme to rehabilitate, upgrade and replace all milling units with high-performing, state-of-the-art machinery and equipment 10 years ago.

He further stated that the initiative was primarily driven by the need to maximise efficiency of the company’s milling operations, enhance flour quality, respond to the dynamics of the flour market and surpass customers’ expectations. 

He said, “What we have witnessed today is the realisation of the company’s dream adding that this outstanding state-of-the-art milling facility, built at a cost of approximately $65m would accommodate the company’s projected sales growth for the next five years and allow it to mill and mix a wide range of flours to a high level of efficiency.

“The “West Mill” addition would consolidate the position of Apapa milling site as the largest in Africa and the second largest single flour milling site in the world, which has been designed and equipped with machinery to blend High Quality Cassava Flour into wheat flour.”

 Coumantaros added that the huge investment was carried out with the support of Buhler of Switzerland, the foremost global flour mill engineering and construction company, that supplied all the advanced milling technology and ancillary equipment.

Speaking on the source of funding for the project, he said, “In addition to internal resources, the company leveraged on bank facilities to fund the project but in order to successfully fund the project, the company had to look beyond short term borrowings.

“A sum of N6bn out of N37.5bn raised from the capital market in December, 2010 from the first tranche of FMN’s Corporate Bond proceeds was committed to the ‘West Mills’ project.”

Source: Punch/ Udeme Ekwere