So sad! Another indigenous local tomato paste company, one of the leaders in Manufacturing, Erisco Foods Limited, has made good its threat of shutting down the $150bn plant and relocating its manufacturing base to a location outside Nigeria according to Today.ng.
The Chief Executive Officer, Erisco Foods Limited, Chief Eric Umeofia, announced on Tuesday that the company was winding down operations preparatory for its final exit from the country.
He said that he was moving the factory to China where he already had a thriving business, adding that from there, he would be manufacturing and exporting tomato paste back to Nigeria, as it was far cheaper doing so than producing locally.
According to him, 1,500 employees of the firm will be retrenched in a process that will span six to nine months, as the company relocates, adding that the retrenchment, which will take place in batches, had already commenced with the first batch of workers being sent home.
The Erisco Foods CEO stated that he had already incurred a loss of over N3bn in the past one year and blamed the Central Bank of Nigeria for withholding foreign exchange from local manufacturers, while approving same for importers of tomato paste.