“Hard Times”: After GSK, Sanofi, Others, India Steel Company Speaks on Leaving Nigeria
- Indian Steel manufacturing company Aarti Steel has debunked media reports alleging that it plans to shut down its Nigerian operations
- The company said the reports are false and erroneous and could harm its business operations in Nigeria
- The company stated that it has already invested about $100 million into the Nigerian economy and is not planning to leave
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.
Aarti Steel Nigeria Limited has denied reports saying it plans to exit Nigeria due to the current economic challenges.
A report alleged that the Indian steel manufacturer was planning to exit Nigeria, with African Industries and Bhari bidding to acquire its assets.
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Aarti invests $100 million in Nigeria
According to a company statement, the reports are false and unfounded and do not reflect the company's intentions or actions.
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The firm said it is currently exploring various avenues to address and mitigate the impact of the false media reports, stating the claims could disrupt its business operations and create unnecessary uncertainty among its stakeholders.
The Indian firm said in a statement signed by Sunil Kumar Sharma, chief finance officer, and Girish Chandra Tripathi, director and head of operations, that it has invested about $100 million in the Nigerian economy, showing its commitment to its industrial growth and development.
Per the statement, the firm’s strategy has been focused on the long-term survival and growth of operations in Africa’s most populous country.
It said:
“We have consistently communicated our plans and initiatives to recapitalize the Company to our banking partners, ensuring that they are kept informed of our efforts to sustain and enhance our business operations.”
Aarti says report could hurt Nigerian operations
Reports say Aarti stated that despite the current economic uncertainty and forex challenges, it remains strong in its belief in the resilience of the Nigerian economy.
Aarti Steel Nigeria Limited was established in 2003 and commenced formal operations in 2007. It has since grown to be one of the foremost manufacturing firms in Nigeria.
It has provided hundreds of employment and invested about $100 million in the Nigerian economy.
Microsoft speaks about the future of operations in Nigeria
The development comes as tech company Microsoft also said it is not leaving Nigeria despite sacking about 200 employees from its Africa Development Centre in Lagos, Nigeria.
The managing director and chief executive officer of Microsoft Nigeria, Ola Williams, has denied reports that the tech company is closing its doors in Nigeria.
William stated this when Obiageli Amadiobi, the Director-General of the National Office for Technology Acquisition and Promotion (NOTAP), met with ICT firms in Lagos.
William added that the company was committed to the sustainable growth of the tech sector in Nigeria.
Many firms have closed shops in Nigeria, citing the hard economic climate and forex challenges.
Top pharma firms shut down
GlaxoSmithKline (GSK), a British healthcare and multinational biotech firm, has announced plans to leave Nigeria after 51 years of operations.
The company said in a statement seen by Legit.ng that it disclosed that the British firm informed GlaxoSmithKline Consumer Nigeria Plc of its plans to cease commercialising its top medicines and vaccines in the country via GSK local operating companies and move to a third-party direct distribution model.
The company added that it had stated its plans to end its distribution agreement in the coming months and appoint a third-party distributor in Nigeria to supply healthcare products.
A French pharmaceutical manufacturing company, Sanofi, exited Nigeria in November last year.
The company stated that the transformation of its business model would take effect in February 2024.
American company set to leave Nigeria
Legit.ng previously reported that after operating in Nigeria for nearly 15 years, the American international personal care company Kimberley Clark has announced its intention to withdraw.
This was revealed in a statement by the company on Friday.
It stated that the business would no longer produce, market, or sell its Huggies and Kotex goods in Nigeria and would close its manufacturing plant and commercial office in Lagos.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
