The Dangote Group says it has injected ₦63 billion into a major truck production plant in South-Eastern Nigeria. The investment, spread over five years, has come in the form of orders for about 3,500 trucks from the Anambra Motor Manufacturing Company (ANAMMCO).
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Dangote began taking delivery of trucks after it signed an agreement with the Transit Support Services (TSS), a subsidiary of ABC Transport, in 2016. The deal enables Dangote to purchase its trucks from local producers, as its expanding interests fuel its demand for logistics solutions.
Located in Enugu, the ANAMMCO plant was established by the Federal Government in 1980, in partnership with Mercedes Benz. It was supposed to assemble Semi Knock Down (SKD) parts into vehicles fit for local use. It later scaled down production as demand for its services fell.
The deal with Dangote is now being credited for reviving its fortunes.
Chairman of ANAMMCO, Mr. Frank Nnaji, said that the plant had been shut down for over seven years until it had an agreement with Shacman Group, a truck components manufacturer, that allowed it to resume partial operations. Full step operations commenced with the signing of the deal to provide assembled trucks to the Dangote Group.
Mr. Nnaji, who is also the Managing Director of ABC Transport Company, estimated that about 90 percent of the plant’s orders come from Dangote. He noted that the renewed activity at the ANAMMCO facility has enabled its previously redundant staff to return to work. It has also spawned ancillary businesses, which provide lubricants, electrolytes, and other materials needed at the plant.
He also credited the National Automotive Policy for opening up a path to recovery for the plant. He noted the policy’s recognition of Enugu and Nnewi as centers for the automotive industry in the South East and said that ANAMMCO was positioned to lead a renaissance in the sector, with its training school for auto technicians.
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The Semi Knock Down parts used by ANAMMCO are shipped into the South-East through the Onne Sea Port, in Rivers State. Until recently, the port has struggled to attract commercial vessels. Concerted efforts to decongest the Lagos ports may be responsible for the increased interest that Onne is now getting from trading concerns. Nnaji says ANAMMCO’s growing need for vehicle parts has also boosted activity at the southern port.
On its part, the Dangote Group has revealed that it intends to order more trucks from the ANAMMCO plant, as its demand for operations vehicles continues to grow. The group says it is satisfied with the quality of the Shacman trucks assembled at the facility. Each truck is currently valued at ₦18 million.
The Dangote Group’s General Manager for Media, Sunday Esan, explained that the group will need more trucks from the plant to serve its refinery in Lagos when it becomes functional.
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