The Asset Management Corporation of Nigeria AMCON, on Friday, officially handed over the moribund Star Paper Mill to Abia State government .
The handover was performed at performed Government House, Umuahia.
Speaking during the handover ceremony, Abia State Governor, Alex Otti said the recovery of the asset was in line with his campaign manifesto to revive most moribund industries in the state, including, the Star Paper Mill, Aba Textile Mills, Ogwe Golden Chicken, International Equitable among others.
The Governor, who said his administration would revive the Star Paper Mill, promised that the industry when fully operational would tackle unemployment by creating about three thousand jobs and also attract private sector investments.
He said that the Star Paper Mill had previously been sold under questionable circumstances, with parts of the agreement breached, noting that it took his intervention with the cooperation of AMCON, to recover the asset, in addition to refunding the payment made by the company that bought it.
The Governor also disclosed that payment for Afro Beverages, another industrial facility under AMCON, was still ongoing but would be completed in the coming weeks, adding that prospective investors are already on ground to partner in operationalizing and managing the companies.
Also speaking, Abia State Commissioner for Industry and SMEs, Michael Akpara disclosed that the state government fully concluded the acquisition of Star Paper Mills Ltd in Aba with a ₦2.5 billion payment, and has equally made an initial ₦500 million deposit for to AMCON, for Afro Beverages Limited, Aba.
Earlier, the Executive Director, Asset Management Corporation of Nigeria AMCON, Aminu Mukhtar Dan’amu said the factory, fell into disuse because of financial distress,but noted that its re-acqusision by the Abia State government was a milestone in industrial development.
