The Asset Management Corporation of Nigeria (AMCON) has officially handed over the moribund Star Paper Mill to the Abia State government. The handover ceremony took place at the Government House in Umuahia, marking a significant milestone in the state’s efforts to revive its industrial sector.
According to Abia State Governor, Alex Otti, the recovery of the asset is in line with his administration’s campaign promise to revive moribund industries in the state, including the Star Paper Mill, Aba Textile Mills, and Ogwe Golden Chicken, among others. The Governor emphasized that his administration is committed to reviving the Star Paper Mill, which is expected to create approximately 3,000 jobs and attract private sector investments once fully operational.
The Star Paper Mill had previously been sold under questionable circumstances, with parts of the agreement breached. However, Governor Otti’s intervention, in cooperation with AMCON, led to the recovery of the asset, and the refund of the payment made by the company that bought it. The Governor also disclosed that payment for Afro Beverages, another industrial facility under AMCON, is ongoing and is expected to be completed in the coming weeks.
Abia State Commissioner for Industry and SMEs, Michael Akpara, revealed that the state government has fully concluded the acquisition of Star Paper Mills Ltd in Aba with a 2.5 billion payment. An initial 500 million deposit has also been made to AMCON for Afro Beverages Limited, Aba. The Executive Director of AMCON, Aminu Mukhtar Dan’amu, noted that the factory fell into disuse due to financial distress but expressed optimism that its re-acquisition by the Abia State government is a significant milestone in industrial development.
The handover of the Star Paper Mill is a positive development for the state’s economy, as it is expected to boost employment opportunities and attract investments. With the state government’s commitment to reviving the industrial sector, Abia State is poised to experience significant economic growth and development in the coming years. The successful recovery of the Star Paper Mill serves as a model for the revival of other moribund industries in the state, and its impact is expected to be felt across the region.