BLAZING THE TRANSFORMATION TRAIL: Sona Group unveils Shongai Technologies; Recycling Plant… first in sub-Saharan Africa

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Left to right:  Mr. WaheedOlagunju (Acting Managing Director Bank of Industry representing the Minister for Industry, Trade and Investment), Mr. Gbenga Ashiru, Commissioner for Commerce and Industry, Ogun State, representing Governor IbikunleAmosun and Mr. Arjan KhemchandMirchandani (Chairman Sona Group) performing the Grand Opening Ceremony at Shongai Technologies Limited in Ota, Ogun State on Friday, April 25, 2014
Left to right: Mr. WaheedOlagunju (Acting Managing Director Bank of Industry representing the Minister for Industry, Trade and Investment), Mr. Gbenga Ashiru, Commissioner for Commerce and Industry, Ogun State, representing Governor IbikunleAmosun and Mr. Arjan KhemchandMirchandani (Chairman Sona Group) performing the Grand Opening Ceremony at Shongai Technologies Limited in Ota, Ogun State on Friday, April 25, 2014

Sona Group of Industries on Friday 25th April, unveiled Shongai Technologies Limited and Shongai Recycling plant in Ota, Ogun State. The facilities were commissioned by the State Governor, Ibikunle Amosun and the Minister for Trade and Industry, Olusegun Aganga.

The ultra modern flexible packaging and printing plant consist of machines and machinery imported from Europe, specifically Germany and are capable of high quality international standard printing.

Stationed in the facility are 5 layer blown film machines which is the first of its kind in sub-Saharan Africa. With a capability to produce barrier film for packaging which is suitable for preserving sensitive products such as vegetable oil, meat packing, chips and all other packaging obligations.

The technology also offers a state-of-the-art technology 10-color printing machine which runs at a speed of 450 meters per minute to meet industrial packaging needs such as laminations, paper labels, BOPP, PE, PET films using tolwene-free ink recommended for food packaging.

The recycling plant provides strong hygienic, durable plastic for foods and beverages as well as biscuits. The two high-tech plastic recycling plant has overall production capacity of 72 metric tons per day.

In his opening remarks at the ceremony, Chairman, Shongai Packaging Industry Limited, Mr. A.K Mirchandani said brands associating with the company enjoy world class packaging solutions which make products attractive to consumers while retaining the integrity and quality of the products.

Mirchandani explained how the company will contribute to the economy, saying “The modest vision of the company is to add additional annual revenue of about N200 billion into the economy, creating direct and indirect employment for about 5000 Nigerians. Our company will also be generating vital foreign exchange for the country through the export of our product and services to countries in sub-Saharan Africa.”

On how the company has benefited from the supportive programmes of the federal government, the Chairman said “Bank of Industry has always played a continued modeling role, activating and motivating themselves and they have always supported the industry because if not for them, it is impossible for the company to sustain the cost of its operations.”

He stated that the company will continue to increase its investment in Nigeria. “In continuation of our drive to provide high quality affordable packaging solutions to the high growing packaging industry in Nigeria, this year, Shongai technologies has planned to install a live packaging manufacturing line from Hindenburg Germany to cater for the needs of foods industries, farming industry, cosmetic industry, healthcare and others.”

In his address at the ceremony, Minister for Trade and Industry represented by the Acting Managing Director of the Bank of Industry, Waheed Olagunju, explained that the government has identified a vibrant manufacturing sector as the main engine of growth. The minister praised the positive contribution of manufacturing companies such as Shongai to the recent rebasing of the economy. “It is impressive to know that under the rebased Nigerian economy, we have recorded improvement in the contribution of the manufacturing sector to Nigeria’s GDP. Under the previous rebasing exercise, the manufacturing sector contributed less than 4% but post rebasing is now above 6%,” he said.

According to the minister, “A lot of projects are ongoing; some are nearing completion while others like Shongai Technologies and Recycling Plant have been completed. Government is equally working assiduously to reinvigorate existing industries in Nigeria by putting in place adequate measures to protect our local industries from unfair competition and stimulate the expansion of domestic production capacity. “

Aganga said the federal government has developed sector-specific incentive packages to address the peculiar needs of every subsector of the Nigerian economy, with the hope that investors such as Sona Group will continue to take advantage of government policies and programmes and expand their businesses to create more employment opportunities for teeming Nigerians.

Appreciating what Shongai has brought to the Nigerian economy, the minister said “It is noteworthy that although the company was incorporated in 1977, they began operation in 1981, their cumulative investment amount to about N125 billion and we understand that because of the confidence they have in the Nigeria investment climate, another N200 billion is expected to be committed in the next three years.”

The minister assured the Sona Group and all investors in the country that the government will do everything possible to safeguard lives and property.

Left to right: Mr. Waheed Olagunju (Acting Managing Director Bank of Industry representing the Minister for Industry, Trade and Investment), Mr. ArjanKhemchandMirchandani (Chairman Sona Group) and Mr. GbengaAshiru, Commissioner for Commerce and Industry, Ogun State, representing Governor IbikunleAmosun during the official Grand Opening Ceremony of Shongai Technologies Limited and the Shogai Recycling Plant in Ota, Ogun State on Friday, April 25, 2014
Left to right: Mr. Waheed Olagunju (Acting Managing Director Bank of Industry representing the Minister for Industry, Trade and Investment), Mr. ArjanKhemchandMirchandani (Chairman Sona Group) and Mr. GbengaAshiru, Commissioner for Commerce and Industry, Ogun State, representing Governor IbikunleAmosun during the official Grand Opening Ceremony of Shongai Technologies Limited and the Shogai Recycling Plant in Ota, Ogun State on Friday, April 25, 2014

Speaking at the ceremony, Ogun State Governor, Ibikunle Amosun through his representative, the state commissioner for Commerce and Industry, Mr. Bimbola Ashiru said it is on record that the state has played host to Mr. President more than six times to commission industries and not to settle problems. The Governor who congratulated the company on the historic achievement also appreciated the company for choosing to establish itself in the state.

He stated that the Shongai packaging and recycling plants are in conformity with one the five cardinal programme of the state’s administration. “Shongai packaging and recycling plants are in conformity with one the five cardinal programme of our administration. I must state that Ogun State has become the clear choice for foreign and local direct investment.

“Let me declare to you that this occasion also marks a great achievement in our administration’s strive towards industrialization of Ogun State. The commissioning of Shongai makes it the 43rd industry commissioned in Ogun State in the last five months. As I speak, we have about 18 industries that are in their various stages of being commissioned soon. Our target hopefully is that at the end of this administration, we would have commissioned about 100 industries.”

The governor added that any industry in Ogun State is assured of minimum of 70 million customers within two years, due to the strategic location of the state which makes it the gateway to the nation.

While speaking on the impact the Shongai recycling plant will have on the state, Amosun hinted on the effort his administration to provide a more conducive environment for present and prospective investors in the state. “This plant will no doubt generate employment opportunities for the citizens of Ogun State thus minimizing the crime rate in our society. I give kudos to Shongai as this gesture will keep the environment substantially free from plastic waste in our state.

“We have approved the holding of quarterly meeting with the Manufacturer Association of Nigeria, Ogun State branch with the aim of putting in place adequate safety measures relating to the industries operating in the state,” he said.

He also asked industrialists in the State to be mindful of their corporate social responsibilities in order to facilitate peaceful co-existence between them and the community.

Also present at the ceremony were the commissioner for environment, the Olota of Ota, Oba Alani Oyede, and Onilogbo of Ilogbo, Oba S.O Ojugbele and many top dignatories and captains of industry.