AMCON HANDS OVER MORIBUND STAR PAPER MILL TO ABIA STATE GOVERNMENT. (PHOTO).

 

AMCON Hands Over Moribund Star Paper Mill to Abia State Government

The Asset Management Corporation of Nigeria (AMCON) on Friday officially handed over the long-dormant Star Paper Mill Limited in Aba to the Abia State Government, marking a significant step in the state's industrial revival efforts.

The handover ceremony was held at Government House, Umuahia.

Speaking at the event, Abia State Governor Alex Otti described the recovery of the asset as fulfillment of his campaign promise to resuscitate moribund industries in the state, including Star Paper Mill, Aba Textile Mills, Ogwe Golden Chicken, and International Equitable Association, among others.

Governor Otti pledged that his administration would revive the mill, stating that once fully operational, it would create approximately 3,000 jobs and attract substantial private sector investment.

He disclosed that the mill had previously been sold under questionable circumstances, with parts of the agreement breached. Through his intervention and cooperation with AMCON, the state successfully recovered the asset and refunded payments made by the previous buyer.

The governor also revealed that payments for another AMCON-held industrial facility, Afro Beverages Limited in Aba, are ongoing and expected to be completed in the coming weeks, with prospective investors already in place to partner in its management and operations.

Abia State Commissioner for Industry and Small & Medium Enterprises, Michael Akpara, confirmed that the state government fully concluded the acquisition of Star Paper Mills Ltd with a payment of ₦2.5 billion. He added that an initial deposit of ₦500 million has been made to AMCON toward the acquisition of Afro Beverages Limited.

Earlier, AMCON Executive Director Aminu Mukhtar Dan’amu explained that the factory became moribund due to financial distress but commended the reacquisition by the Abia State Government as a milestone in industrial development.