Chemstar Paints Industry Nigeria Limited, has stated that plans are ongoing to deploy the use of renewable energy in the long term as the cost of providing alternative energy to power its operations is eating deep into profit margins of manufacturers in the country.
The Group Managing Director/Chief Executive Officer of Chemstar Paints Industry Nigeria Limited, Aderemi Awode, explained that apart from the staggering amount spent on diesel, the increased electricity tariff is also a major setback for manufacturers in the country.
Awode stated this on the side-lines of its long service award ceremony in Lagos.
In his words, “We are looking renewable in the long term, because of the industry in which we operate. Our power consumption is quite huge, but we are looking at it because we are spending so much on energy and tariff keeps increasing every time and this is eating very deep into our profit. It is something we are considering in the long term.”
He added that the company is also looking inwards to increase local raw material sourcing into its production, stressing the urgent need for manufacturers to work with relevant government agencies to develop local content.
“The input into our production locally is currently about 40 per cent, but in view of scarcity of dollars and the devaluation of the naira, the onus of manufacturers is to develop local content and we are working with all the relevant agencies to see how we can increase the input into our manufacturing processes,” he added.
Fielding questions about the event, the Chemstar boss said the event was to celebrate staff that have contributed significantly to the growth and success of the company over the past 26 years.
“In an era where you have staff changing jobs at will and looking for better opportunities, but here at Chemstar, we have very low turnover. The reason for this low turnover is that they appreciate the fact that the company has also provided the conducive environment for them to operate. We have also been good and fair to them and this is why they prefer to stay with us even though they get offers from elsewhere.
The event also saw 10 years long serving employees rewarded with a plaque; cash reward of N20, 000; deep freezer; 32’ television and a stainless burner while the 15 years long serving category saw staffs going home with a double door fridge; 32’ television; 10kg washing machine and a cash gift of N30, 000.
Nine of its 20 years long serving staff were rewarded with a 40-inch television; washing machine; double door fridge and N40,000 cash reward each.