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INDUSTRY EVENTS
Coleman Cables to increase production output by 24,000 tonnes come July By JEROME ONOJA
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oleman Cables will kick start the production of marine and transmission cables by July this year. The simultaneous projects, together with the company’s new production plant, will increase its production output by 24,000 tonnes, the Managing Director/Chief Executive Officer of the company, George Onafowokan has said. Onafowokan disclosed this in a chat with Majorwaves while reflecting on his discussion on panel at the 2019 Practical Nigerian Content (PNC), which focused on local content opportunities for supporting oil and gas industries. Coleman Cables has been responsible for 80 percent of installed wire and cables production in Nigeria since the launch of its Sagamu factory. Along with Cutis Cables, Nigeria produces 70 percent of wires, cables in West Africa. Coleman,
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currently, does 48,000 metric tonnes of copper. He noted that the projects are already 50 percent done. “We are already 50 percent done on what we had. We are just expecting machinery now. That should come in by March, April or May. Hopefully, commence production in July. That’s really the game changer. That will have direct impact on Bonga Southwest - like Zabazaba- because those are FPSOs, which are vessels and these vessels when manufactured do use a lot of foreign cables. This is the first time we are having a local company with the capacity to produce such cables for vessels,” he said. Speaking on measures that should be put in place to ensure strict compliance to the Nigerian Content Development and Monitoring Board’s (NCDMB) policy on cables, he said that even though the board has done a lot to support local cable manufacturing companies
Majorwaves Energy Report FEBRUARY 2020, Vol 3 No 2
in this regard, International Oil Companies (IOCs), EPC contractors and service companies should be properly monitored to ensure that they don’t import cables that are produced in-country. He noted that despite the efforts NCDMB has made, the country is not yet there regarding local content and emphasised the need for more measures to be put in place to ensure compliance. Onafowokan informed that the ongoing expansion projects of the company is costing it $40m (fourty million United States dollars). He stated that it’s so because the company is also doing backward integration of its processes and putting other measures in place to meet local and export demands. .
