Bel Papyrus Limited, one of Nigeria’s biggest tissue manufacturing outfits, has revealed that local manufacturers require government support to secure raw materials locally. Due to the devaluation of the local currency, importing raw materials is expensive.
In a chat with journalists, Charbel Kairouz, the general manager of Bel Papyrus Limited, said, like many other manufacturing firms, they grapple with challenges relating to sourcing foreign exchange for raw materials required for the manufacturing process. “Power also presents a major challenge as the supply from the grid remains unstable.”
“Local raw materials, with a stable price, will allow companies to save costs, time, and key supply chain challenges. In addition, if the government can look into making purchasing raw materials possible locally, it will go a long way to solving a key problem for all manufacturers in Nigeria,” said Kairouz.
Bel Papyrus is the largest tissue reel manufacturer in West Africa. It employs more than a thousand personnel to produce high-quality and cost-effective products. It has three paper machines with an annual capacity of more than forty-five thousand metric tonnes (45,000 MT) of jumbo reels.
The company, which has been in operation for over 25 years, is considering embarking upon backward integration as soon as economic conditions improve and the power supply becomes more stable.
Manufacturers in Nigeria, apart from struggling to secure foreign exchange for the importation of raw materials, are battling high energy costs, which represent almost 40 percent of all their costs, according to the Manufacturers Association of Nigeria (MAN).
“We need stable power because a majority of our equipment is designed to run 24/7, and if stopped at any time, we will experience technical difficulties resulting in a longer recovery time and loss of resources”, said Kairouz.
The company has scaled this challenge by relying on self-power generation solutions offered by Clarke Energy.
“Clarke Energy showed professionalism by assessing and analysing the condition of our existing power setup, carrying out a technical study, and recommending the deployment of the Jenbacher gas power plant,” said Kairouz.
According to Kairouz, since switching to gas, the business has improved competitiveness in the market, which has resulted in cost savings by using gas to generate electricity rather than relying on diesel generators.
He said the switch to gas and the decision to invest in their 11.3 megawatts (MW) plant to power their three factories has made operations more efficient, with factory equipment running over 90,000 hours. It is also cleaner, helping to cut emissions while offering uninterrupted supply and boosting productivity.
Speaking on the services provided by Clarke Energy, Kairouz said, “They have a very responsive after-sales team available to attend to us when we call. We have realised a substantial increase in value, specifically in terms of the energy yield measured in kilowatt-hours per standard cubic meter of gas.
“Clarke Energy designed the entire power solution, from front-end engineering designs to engine delivery, installation, commissioning, and equipment maintenance over its life span.
Yiannis Tsantilas, managing director of Clarke Energy in sub-Saharan Africa, said: “Bel Papyrus has demonstrated resilience as it expands its investment in Nigeria over the years. Its values align with Clarke Energy’s drive to extend value to various manufacturers and service providers in Nigeria.
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