Kewalram Chanrai Group, a global conglomerate, is to establish a new automotive assembly plant that will produce Foton range of vehicles in Nigeria, estimated to gulp over N10 billion.
The move is in response to the new automotive policy introduced by the Federal Government, aims to encourage local automobile assembly, discourage imports and increase employment for Nigerians.
According to Raju Sawlani, executive director of Kewalram Chanrai Group, the conglomerate has already acquired 25 acres of land in Ikorodu, Lagos, for the automotive plant. The company is in the process of finalising the designs, importation of equipment and other necessary tools required for effective take-off.
Sawlani discloses that an estimated over N10 billion will be invested in the project with an initial capacity of 15,000 units annually, which can be increased as required, saying the Group’s partnership with Foton will ensure high quality and affordable vehicles for Nigerians in addition to huge generation of employment in the country.
The move would transform the nation’s industrial landscape, leading to an increase in skills development, job creation and conserve valuable foreign exchange, he says.
The idea of an auto assembly, he notes, was conceived a few years ago, especially since the Group is known for setting-up local industries and believe in backward integration, noting “with the re-introduction of the auto policy, it has become imperative to set-up local auto assembly plants.”
With the coming together of Kewalram Chanrai Group with Foton to set-up an ultra-modern state-of-the-art assembly plant in Lagos, the plant will assemble the full range of commercial and passenger vehicles as offered by the Group including high-quality trucks, buses, vans, pick-ups, and sport utility vehicles.
Sawlani, who has over 18 years of experience managing 25 brands in the Nigerian auto industry, assures that the assembly plant will meet global industry standards, and make Nigeria proud, as Kewalram Chanrai, now operating in 63 countries, including Nigeria, set-up business in Nigeria in 1900 (over 100 years ago).
He expresses support for the auto policy, which he says forms a part of the agenda of President Goodluck Jonathan’s industrial revolution plan and the National Enterprise Development Programme, believing that the policy will be very successful and place Nigeria in the global automobile map, as numerous auto parts and accessories production plants will also be set-up.
Also, the Group is considering setting up an auto technical training school that will cater to qualifying Nigerians, resulting in increased employment.
Foton is the largest commercial vehicle manufacturer in China and the second largest in the world, having produced and sold more than 850,000 vehicles in year 2011. It has joint venture companies with Daimler and Cummins. It vehicles are distributed in more than 40 countries including Angola, Algeria, Kenya, South Africa, and Russia, Spain, Italy, Holland, Indonesia, Vietnam, Middle East, India, Argentina, and Chile.
MIKE OCHONMA
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