Roxettes Group is contemplating the relocation of its automotive plant, paint and chemical subsidiaries, and different operations from the Southeast to Lagos.
Sources near the corporate’s administration confirmed this to Nairametrics on Saturday.
The group’s subsidiaries embrace Roxettes Motors (automotive meeting), Roxettes Chemical Industries Ltd, and RoxyCarb (paint and uncooked supplies), all at the moment primarily based in Abia and Enugu States.
The transfer comes amid reported persistent logistics bottlenecks, rising freight prices, recurring sit-at-home workouts, and broader safety disruptions within the Southeast, which have slowed manufacturing and disrupted provide chains.
The potential transfer is predicted to position the amenities in Lagos, close to seaports, monetary establishments, and export infrastructure, although discussions stay at a preliminary stage.
“The discussions are nonetheless at a feasibility stage, however administration is more and more involved in regards to the cumulative influence of port congestion, logistical inefficiencies, restricted working days, and safety challenges throughout the Southeast on sustained industrial operations,” one of many sources instructed Nairametrics.
Consultations with traders
Though the Chairman/CEO, Dr. Kaycee Orji, has not publicly confirmed the plans, consultations with worldwide traders and technical companions are understood to be ongoing.
Nairametrics understands that the overview covers the Roxettes Motors meeting plant in Obuaku, Abia State, in addition to its paint and uncooked supplies subsidiaries in Enugu State.
The sources additionally indicated there’s uncertainty over the imported CNG manufacturing and processing tools, initially meant for set up on the Obuaku Industrial Zone in Abia State.
They’re not sure if it will stay within the Southeast or be redirected to Lagos.
The potential relocation can be anticipated to have an effect on the group’s chemical and paint subsidiaries, which at the moment function in Enugu State and provide important inputs to Nigeria’s automotive and manufacturing industries.
What you need to know
Lately, some companies have reportedly left the Southeast on account of insecurity and operational challenges.
- For instance, in a 2024 interview with BBC Igbo, businessman and socialite Pascal Okechukwu, popularly often known as Cubana Chief Priest, revealed why he moved his enterprise pursuits from the Southeast.
- He defined that the concern of kidnapping and assaults had pushed away clients from the area, prompting him to relocate. He now operates numerous companies, together with golf equipment, eating places, and different pursuits.
Reported circumstances of kidnapping, together with recurring sit-at-home workouts, are believed to have at occasions disrupted enterprise operations in elements of the Southeast, posing challenges for some entrepreneurs and affecting common business exercise.
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