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01/02/2012 (THISDay) - Flour Mills of Nigeria Plc has said it had concluded agreements for the supply of a new 500 metric ton per day Edible Oil Extraction and Refining facility to be established in Ibadan.

According to a statement, the new oil complex, which was an investment of N7 billion, would bring additional capacity to the company’s existing edible oil operations and provide much needed raw materials for its animal feed milling. The firm also said that the facility would create synergy for the group.

Head of Flour Mills Agro-Industrial Division, Mr Paul Gbededo, also said that the  investment constituted phase two of a three-stage investment programme of more than N20 billion in the cultivation and extraction of edible oil from soybean and oil palm, that had been designed.

He explained: “The first stage involved the expansion of the company’s soybean cultivation in Kaboji, Niger State and the purchase of an existing oil extraction and refining business in Ibadan. The new plants to be commissioned in the second stage will more than double the extraction capacity to 500 metric tons per day of Soya and 300 metric tons per day of palm kernel.

“The extracted crude oils will be refined in 400 metric tons per day state-of-the-art multi-oil refinery to be established on a new site purchased for this purpose.  A  100 metric tonnes per day fractionation plant will split 100 metric tons per day of the refined Palm Oil into Olein, which will be bottled for retail consumption, and Stearines for industrial use.

“The third stage of the company’s investment in Edible Oils will be the establishment of Palm Plantations to augment local raw material supplies, and the establishment of an additional 750 metric tons per day multi oil refinery and margarine packaging plant at Agbara Industrial Estate, Lagos State.”

Gbededo pointed out that the large-scale agricultural projects would among other things; provide direct employment and economic empowerment.