Oct 04, 2005. /Lesprom Network/. Nampak, Africa’s largest packaging company, is making positive progress towards the development of its permanent cartons manufacturing facility in Nigeria, with the plant scheduled to open at the end of next year. A temporary installation is already up and running. The investment follows a request from British American Tobacco (BAT) for Nampak’s Cartons & Labels division, makers of cigarette boxes amongst a range of other products, to support its operations in the West African country. In line with Nampak’s Africa growth strategy, which involves partnering with multi-national customers as they explore new markets, the company approved commencement of the feasibility process during 2003. Midway through the study, the Nigerian government announced its intention to restrict the importation of packaging. Even though an extension to the prohibition was obtained, Nampak was never-the-less required to have a factory working prior to the December 2004 deadline. A project of this sort would ordinarily take about 18 months. However, with the help of the Nigerians and the local authorities, Nampak managed to set-up a temporary operation in an existing warehouse within a ground-breaking six months. The company air-freighted a gravure press from Europe, enabling it to support BAT’s requirements from the date stipulated by the government. According to divisional Managing Director, Rob Morris, the time to market reinforces an emerging capability among African countries to up the bar in terms of their ability to compete more effectively on the world stage. The new temporary facility in Ibadan, approximately one hour north of Lagos, has been supplying BAT since February 2005. Four South Africans are based on-site and approximately 60 Nigerians will be employed as the project develops. Construction of the permanent facility has now commenced on a greenfields site. It is anticipated that commissioning should take place in mid-2006. The total investment is estimated to be in the region of R150 million. BAT is one of Nampak’s major customers, and the terms of the agreement governing the Nigeria relationship are expected to deliver real value to the company’s shareholders over the 10-year period. As soon as the plant is fully functional, Nampak plans to explore other opportunities in the West Africa region, specifically in Benin, Togo and Ivory Coast. Such opportunities may take the form of entirely new markets or export destinations. Once the new plant is commissioned and Nampak is supplying BAT’s full requirements, it will have additional capacity to support a much broader range of customers in Nigeria, which could be of value to existing multi-nationals in the area.