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SCOA Seeks Support for Auto Assemblers

SCOA Seeks Support for Auto Assemblers

The Federal Government  and corporate organisations have been asked to support  genuine assemblers of automobiles.

Chairman SCOA Nigeria Plc, Mr. Henry Agbamu,  made the call in Lagos while receiving an eight-man delegation from the Economic Community of West African States (ECOWAS) countries. They include Nigerians and three representatives from the ECOWAS led by Mr. Traore Kalilou.

The team also visited the SCOA MAN Trucks Assembly Plant.

He said the support was needed because the industry is capital intensive.

Group Managing Director /Chief Executive Officer SCOA Nigeria PLc Dr. Massad Boulos said the SCOA MAN Assembly Plant, which is a mix of Semi- Knock Down (SKD) and Complete Knock Down (CKD), has a production capacity of 3000 units per year, depending on the shifts.

He noted that the capacity also depends on whether the plant is using one or two assembly lines, adding that the assembly of trucks is different from assembly of passenger cars or buses because it is more complex.

“The trucks are assembled without welding. But after the assemblage, there are other fabrication works that will be done to create jobs. These are done at another location which will generate more employment. This is why trucks are different,” he added.

Boulos, who described the automotive policy by Federal Government as a welcome development, said the policy would increase local content as well as create auxiliary works that can provide locally produced components.

He expressed confidence that soon component providing companies that have left Nigeria would return to operation as the industry is being boosted by the new policy.

“The government has put in place some forms of soft loans to assist the assemblers.  But our consumers will also need such soft loans too. Also, there is need to put in place custom duties that will protect the local industry and its consumers. The idea of producing locally is to create job and promote local production,” Boulos added.

Kalilou said the team was happy with what they saw, especially the implementation of the automotive policy.


Source: The Nation Nigeria

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