Re-open Ibeto Cement, President orders • Prices may crash

COSMAS EKPUNOBI, Abuja

President Umaru Musa Yar’Adua has ordered the immediate reopening of the N12 billion Ibeto cement plant in Rivers state.

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More cheering news, however came yesterday as the company with installed capacity of 1.5 million metric tones promised to re-launch its products into the cement market with a big bang in the next 40 days.

The re-entry of the cement bagging company into the industry, is expected to significantly force down the price of cement.

The opening may engender a price war in the industry. A 50kg bag of cement costs about N1,500.

The N12 billion Ibeto cement plant in Bundu Ama, Rivers State was shut down by the immediate past administration of former president Olusegun Obasanjo following a petition by a French company accusing Ibeto of alleged violation of import regulations. The company was alleged to be representing a cartel that wants monopoly.

Appeals by prominent Nigerians including Chief Emeka Anyaoku, former Minister of Finance, Mrs. Ngozi Okonjo-Iweala and China to former President Obasanjo to reopen the plant failed.

Source alleged the former administration did not allow the company to discharge its imported bulk cement worth several millions of dollars.

But President Yar’Adua after extensive consultations with the relevant government ministries and parastatals, on Friday ordered the immediate reopening of the Ibeto firm.

Source alleged that both the ministries of industry and finance had in a recent letter that informed the decision of President Yar’Adua, given a clean bill of health to Ibeto cement company.

Ministry of Finance and Nigerian Customs in their separate letters to the President dated July 10 and July 16, respectively, said that Ibeto did not in any way violate government’s policy on bulk cement importation.

But chairman, of the company Mr. Cletus Ibeto while fielding questions from newsmen yesterday in Abuja, disclosed that the price of cement, a major input in construction, may crash in the next 40 days when the company’s product is expected to re-enter the market.

Mr. Ibeto who thanked the President for the gesture said that the re-opening of the plant has not only shown the direction the administration but has further given hope for a level playing field.

He said I will ever remain grateful to the President and I will never be a party to any catel that would create artificial scarcity of cement in the country. He said the re-opening had given hope to the over 1000 workers of the company.

Mr. Ibeto said "the price of product is forced down by availability of the product in the market, and when the products are available there is every tendency that the prices would come down".

He said the company will hit the market with its product in the next 40 days. He however said that the Federal Government which had graciously approved the re-opening of the plant will help it re-coup the losses it suffered as a result of the long closure.