A Chinese firm, Xiamen XGMA International Trade Company Limited, has entered into partnership with a Nigerian firm, Richbon Group Nigeria Limited, to invest $40 million, about N6.4 billion, to set up a tractor assembling plant in Nigeria. This will lead to the local manufacture of XGMA tractors, heavy duty machineries and equipment.
XGMA, founded in 1951, is a Chinese national large-scale backbone enterprise, which specialises in manufacturing of wheel loaders, excavators, road construction machinery, forklift trucks and mini-machinery.
Speaking in an interview announcing the partnership in Lagos, Mr. Sahm Yap, Vice President Xiamen XGMA, said the assembling plant, which will be built in Anambra State, will be used for the manufacture of majority of its earth-moving machineries and will also provide job opportunities for about 5,000 Nigerians when completed.
Yap explained that Nigeria is an important market to XGMA and it is hoping to make it a centre for sales, after-sales, spare parts supply, financing and manufacturing.
He further stated that the company is currently in discussion with the relevant authorities and is about getting the necessary clearances for the assembling plant, adding that immediately the necessary approvals are secured, work will commence in earnest on the plant.
He said Xiamen XGMA is one of the major supplier of earth moving tractors and equipment in China and the world and has been eyeing the Nigerian market because of the opportunity it will afford the company to deploy its high quality products in Nigeria, and also look for other investment opportunities, especially in areas related to manufacturing.
He said, “Our machines are of the highest quality and the price is highly affordable, this is what we believe will give us an edge against other competitors in the Nigerian market.
“With the partnership with Richbon and when the assembling plant is concluded, our products will be an household name in Nigeria, especially in the area of civil engineering and construction.
“The partnership will create enormous job opportunities for Nigerian and will help attract the much-needed investments into Nigeria.”
He said the company is ready to transfer its technology to Nigerians and cooperate with Nigeria in achieving economic development, adding that the memorandum of understanding it signed with Richbon will serve as the starting point towards achieving these goals.
On its partnership with Richbon, Yap disclosed that it took the company a long time before it could get a company to partner in Nigeria, due to its commitment to quality and high standard.
“When we had the opportunity to partner with Richbon, we discovered that we had a lot in common and that our interests match. Since we started the cooperation with Richbon about a year ago, last year, we have seen a very good and long term partner and we believe it will be beneficial not only to both companies, but also to the Nigerian economy.
Also speaking, Mr. Chike Muonagolu, Chairman/Chief Executive officer, Richbon Group, said both XGMA and Richbon have signed an assembling agreement with two vehicle assembly plants in Nigeria, as regards the tractor assembling plant in Nigeria, adding that within the next 18 months, they intend to employ between 1,500 to 2,000 Nigerians in the initial stage of the project.
He expressed optimism that that the partnership will bring about increased patronage of the products by governments at all levels, corporate organisations and individuals. “Knowing that the products one is using is made in Nigeria will endear the products to Nigerians, especially as they will know that they can easily get spare parts, after-sales service among many other benefits,” he said.
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