Friday, April 08, 2016 3:50PM / NSE
In furtherance of the transformation strategy approved by its board of directors, to become a fully integrated Agro Industrial National champion, the management of Union Dicon Salt Plc. (UDS Plc.), has signed terms for another investment in the Agro Industrial sector.
In addition to its earlier agreement for its land acquisition of 15,000 Hectares of land in Edo State, this investment will add 2,000 Hectares to its land portfolio, and make UDS Plc. the largest Cassava producer in Nigeria.
This transaction will ensure security of feedstock supply, as UDS Plc. moves ahead in establishing its Cassava processing facilities in Ebonyi, Edo & Delta State. It will also fulfil management’s commitment to become cash flow positive before the end of 2016.
Union Dicon Salt Plc operates in the Nigerian Consumer Goods Section and was established in 1984. Union Dicon Salt Plc was until a few years ago, the largest producer of salt in Nigeria. Following board and shareholder approval, it has been diversifying into the Agro Industrial Sector, with an initial concentration of Cassava, and Starch processing.
UDS Plc has finalised agreement with GEA Westphalia of Germany to build the largest industrial starch processing facility in Nigeria.
According to comments received from Union Dicon on April 11, 2016, the Secretary to the State Government (SSG) of Ebonyi State, Professor Bernard Odoh, stated that “this is a sign of the trust we have in Union Dicon Salt Plc, to participate in the Agricultural Industrialisation of Ebonyi State.”
Meanwhile, Chuka Mordi, CEO of Union Dicon Salt Plc, said, ”the Governor of Ebonyi State, H.E David Umahi was crucial in concluding this transaction, and his visionary outlook for the development of his state, has driven this process. We believe that the 15,000 Hectares, added to our existing operations, will enable us develop the leading Cassava & Starch operation in West Africa.”