Abimbola Akosile
24 June 2009
Lagos — The Export-Import Bank of the United States (Ex-Im Bank) has provided a long-term loan guarantee for the export of equipment from US to manufacture intravenous (IV) solutions, injectable medicines and bottled water in Delta State, Nigeria.
The move, which is expected to boost Nigeria's access to life-saving medical supplies, is to be carried out by American Plastics Technologies Inc. (APT), Schiller Park, Illinois; which will create forty new US jobs and hundreds of jobs in Nigeria.
According to a Bank statement, Alpha Fluids Limited of Lagos, which is owned by Dr. Festus Okubor, will use the equipment to make sterile, high-quality IV solutions, medical drips, and vitamin-enriched bottled waters and medical beverages in a new plant in Asaba, Delta State.
In addition to providing the equipment, APT, a 60-employee manufacturer located in the Chicago suburbs, is to provide installation, training, and operations services for the new facility.
Ex-Im Bank is expected to guarantee a $15.5 million loan from the Private Export Funding Corporation (PEFCO), New York, N.Y., to support the sale; while Oceanic Bank International Plc of Abuja, Nigeria, will also guarantee the transaction.
"This project is going to change thousands of lives for the better, for several generations to come in Nigeria; it is such a life-saving thing," said APT's Chief Executive Officer (CEO), Dr. Rao Murukurthy. "And it will enable our company to add 40 US employees immediately to help with installation, operations and maintenance at the new plant."
"This transaction furthers two of Ex-Im Bank's highest priorities: strengthening support for US small business exports and increasing exports to buyers in sub-Saharan Africa. In addition, it will enable Alpha Fluids to provide quality products to enhance health care in Nigerian hospitals," said Ex-Im Bank Chairman Fred P. Hochberg.
"It is especially important to find ways to expand this type of Ex-Im Bank support during these challenging economic times," he added.
Nigeria lacks sufficient domestic production capacity to meet the country's need for intravenous solutions. With the prevalence of malaria and other diseases that require high IV fluid usage, the World Health Organisation (WHO) estimates that the annual demand would increase dramatically.
Alpha Fluids' new plant is to have an annual production capacity of 9 million 500-millilitre bottles of IV solutions, and 24 million bottles (500-millilitre, 1 litre and 1.5 litre) of medical/energy beverages.
The project's proximity to a nearby airport under construction and to the Niger River will allow for eventual exportation of product to neighboring West Africa states, thereby extending the project's health benefits to residents of those countries, the statement read.
Sixteen US suppliers from across the country, eight of them small businesses, are participants in the APT export.
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