Honeywell Flour Mills Plc invests N1 billion in the upgrade of its mills

Honey well cassava renewnaijaHoneywell Flour Mills Plc said it has invested N1 billion in the upgrade of its mills for increased cassava flour inclusion. This is a boost to Nigeria’s Federal Government’s transformation agenda in the Agricultural sector and the cassava inclusion policy which requires flour millers in Nigeria to include a minimum of 20 per cent cassava flour in wheat flour meant for the baking of bread and the production of other confectioneries.

The Federal Government a couple of weeks ago, said the policy will save the country about N150 billion annually, explaining that about N750 billion is spent on wheat importation annually. Mr. Lanre Jaiyeola, Managing Director/Chief Executive Officer, Honeywell Flour Mills, who disclosed this a press briefing in Lagos, also stated that the company is exploring viable backward integration options to further boost cassava flour availability in demonstration of its belief in and support for the initiative.

Jaiyeola also revealed that as part of the company’s strategy to scale up its production capacity, civil works has commenced on its 63-hectares land in Sagamu, Ogun State in preparation for the construction of the factory buildings. He confirmed that the project is on course for completion and start of commercial production within the next 24 months. According to him, this is expected to grow the company’s top and bottom line to provide better returns to its shareholders.

He, however, urged the Federal Government to provide palliatives to encourage increased investment in cassava growing, processing and utilisation. He explained that there is better understanding and collaboration between flour millers and the ministry of agriculture on the cassava initiative, expressing hope that the collaboration is sustained for successful implementation of agriculture transformation policy.

Shared from www.nairapark.com

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