Ogun State’s New Aluminium Recycling Plant to Generate $150 Million in Annual Revenue

Neveah Ltd, a Nigerian commodities trading company, is poised to revolutionize the aluminium and copper recycling industry with the establishment of a recycling plant for the production of aluminium and copper ingots in Ogun State. The company stated that this facility is expected to generate annual revenues exceeding $150 million and create over 500 local jobs once fully operational, significantly contributing to the region’s socio-economic development.

The announcement came after a meeting between Mr. Ibidapo Lawal, Managing Director and CEO of Neveah Ltd, and Ogun State Governor Dapo Abiodun, at the governor’s office in Oke-Mosan, Abeokuta. Lawal noted that the plant would primarily focus on recycling aluminium scrap from various sources such as car engines and cans, transforming them into high-quality ADC12 ingots, a widely used aluminium alloy in die-casting for automotive parts. These ingots will then be exported to automotive manufacturing companies in countries across Asia, including Japan, Indonesia, and others.

Mr. Lawal pointed out that the strategic location of Ogun State, near key ports such as Tincan, Apapa, and Lekki, played a pivotal role in the decision to establish the plant in Mowe. The proximity to Lagos, Nigeria’s commercial hub, also adds to the investment potential, with the land and property prices in the area continuing to appreciate.

“Initially, this project was meant to be situated in the north, but we chose Ogun because of its proximity to ports like Tincan, Apapa, and, of course, Lekki.,” said Lawal. “Another thing is the availability of gas. If we set up our plant in another state, we would probably have to power our plant using diesel, but in Ogun State, gas is available, so it is cheaper for us.”

Lawal also commended Governor Dapo Abiodun for fostering a business-friendly environment in Ogun State, “The governor was very happy and quite supportive. It is interesting to see a governor who is willing and ready to work with the people, promote investment, and care so much about the people. It was a very productive meeting,” he said.

According to Lawal, once operational, the plant is expected to contribute around 2.5% of Nigeria’s total non-oil export value, marking a significant step towards reducing the country’s dependency on oil exports.

In line with its commitment to fostering local industries, Neveah Ltd’s project will play a crucial role in driving the development of Nigeria’s aluminium and copper industries, further solidifying the nation’s position in the global recycling market.

Source: The Nation