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Monday, May 25, 2015

Toyota to set up assembly plant in Nigeria

Toyota to set up assembly plant in Nigeria
Michael Ade-Ojo, chairman of Toyota Nigeria L i m i t e d (TNL) and principal dealer on all new Toyota models in the country, has announced the company’s plan to set up an automobile assembly plant in Nigeria.

The development ends months of speculation within industry circles on the company’s position of establishing an assembly plant in Nigeria following the autopolicy of the Federal Government introduced in 2013.
While the location of the proposed assembly plant was not made known, BusinessDay exclusively gathered that Toyota Nigeria may have acquired a moribund steel plant located at Ikotun-Egbe area of Lagos for the assembly operations. Although estimated investment value and sources of funds to be injected into the project were not made public by TNL management, the upcoming plant will have the capacity to assemble Toyota Hiace commercial buses under the semi knock down (SKD II) programme.

The plant, according to the company chairman, would be expected to be ready in August this year. Ade-Ojo revealed these during the 2015 TNL customers and journalists’ award night in Lagos, Nigeria’s commercial capital.

It would be recalled that in 2013, Ade-Ojo, who is also the founder of Elizade University, Ilara-Mokin, Ondo State, said TNL was giving serious consideration to the establishment of an automobile assembly plant in Nigeria.
He explained at the 2013 Abuja Motor fair that although no decision had been taken yet on the proposal, it did not foreclose the idea of establishing a Toyota auto plant.
According to him, “Many have expressed the view that the time is ripe for Toyota, a consistent leader in the annual new vehicle sales in the country, to set up an assembly plant that will serve the local and neighbouring markets.”

While reiterating Toyota’s position that it is not opposed to Nigeria’s automotive policy which seeks to encourage local assembly of vehicles in the country, he also called for transparence and fairness to all stakeholders and more commitment to the government’s auto policy direction. Ade-Ojo said the company was already thinking along the direction in tandem with the automotive policy and pledged that the move was   serious plan that should materialise as soon as most of the conditions were met and enabling business climate remained re-assuring.
Reacting to the development, Aminu Jalal, director general, National Automotive Council (NAC), said the decision of Toyota to set up an assembly plant in the country would boost Nigeria’s much needed march towards industrialisation.

“Toyota is a global market leader and it is hoped that the same feat will be replicated in Nigeria. It will also help create jobs and other support industries as well as lower the cost of locally assembled models which is part of the automotive policy objectives.”
Kelly Nwosu, an economist, said that it was expected that a Toyota assembly plant in Nigeria, like other local assemblers that had shown interest in
producing cars generally, would lead to a reduction in the price of the brand of vehicles. It would also lead to the creation of more jobs, improvement and transfer of technology to the locals and boost economic development, he said.

In 2013, Ade.Ojo had told BusinessDay that Toyota Nigeria was conducting a survey to obtain necessary data that would lead to the establishment of the plant.
He said the actualisation of the project would depend on a number of factors, but he did not enumerate the factors. He simply said, “When we get most of the things (required), I can assure you, we will get an assembly plant in Nigeria.”
He added that whenever the company was ready, it would execute the project in conjunction with its parent company, Toyota Motor Corporation of Japan.

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