Promasidor Nigeria seeks $25m loan from IFC to modernize plant

Promasidor Nigeria Limited, makers of Cowbell, Loya and Miksi powdered milk, among others has applied for a $25m loan from the International Finance Corporation (IFC), a member of the World Bank Group to upgrade its Lagos plant, which would start operation in 2017.

The company makes bouillon cube seasoning and so would like to modernize the equipment used in making this product. In addition, Promasidor is seeking to extend its dairy brand portfolio and automate its powdered milk, choco and coffee production lines.

The announcement was made by IFC earlier this month, after visiting the company’s facilities at Isolo Industrial Estate in Lagos, in September 2015.

According to the request, the modernization will not involve any expansion of the building infrastructure.

“Promasidor factory sits on a 6.61 hectare plot of land and consists of the main production area; raw materials warehouse; storage facilities; an administrative block; finished goods warehouse and loading bay; a truck parking area; a generator house; vehicle repair workshop; staff amenities; and an effluent treatment plant (ETP); all occupying approximately 60% of the site,” it said in a review.

“Promasidor currently operates a primary dry production process; the manufacturing process consists of mixing/blending of raw materials, filling and packaging,” it added.

“The company runs four factory units within its premises; each factory houses a different product and all factories are operated concurrently.

“The four factories are; ‘Onga’, which produces Onga seasoning; ‘Choco’, which produces cowbell powdered chocolate milk, a milk factory, which produces Cowbell, Loya and Miksi powdered milk; and a tea factory, which produces Top Tea tea bags.”

All products of the company are sourced or supplied in bulk except for its infant formula, which is imported as a final product, processed and packaged in different sizes. The Onga seasoning are manufactured locally from local and imported raw materials.

Milk powder is imported from European/New Zealand suppliers, while dried tea leaves are imported from Kenya. Select materials for seasoning and flavored milk are sourced locally.

IFC’s review included a site visit; desktop review of available environmental policies and procedures and assessment reports including the environmental study, environmental audit reports and environmental procedures for the existing operations.

IFC also met with key management personnel of the company; the HSE Manager; HR Manager; Legal and Compliance Manager and Food Safety and Quality Control Officers.

The Environmental and Social Review Summary (ESRS) is prepared and distributed in advance of the IFC Board of Directors consideration of the proposed transaction.

Source: IFC, International Finance Corporation
Date: March 2, 2016
Project number: 37143
Country: Nigeria
Region: Sub Saharan Africa
Sector: F-Al-Other Food
Department: GbI Ind, Manufact, Agribus & Services
Company name: Promasidor Nigeria Ltd
Environmental Category: B
Status: Pen PDC-IR

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