The Benue Investment and Property Company (BIPC) says the rehabilitation of Taraku Mills has reached 83 per cent completion, with commercial production expected to commence between October and November.
Dr Raymond Asemakaha, BIPC Group Managing Director (GMD), disclosed this in an official response to Prof. Iyorwuese Hagher’s recent intervention on the revival of the moribund factory.
Asemakaha said the company adopted a phased, business-first approach after taking over the factory in 2023, following decades of inactivity.
According to him, an independent technical audit revealed that less than five per cent of the machinery was functional, while the factory lacked reliable power, industrial water and established farmer-supply linkages.
The GMD said Taraku Mills had an installed capacity of 200 metric tonnes per day, adding that two soybean-crushing lines, each with a capacity of 50 metric tonnes, had already been restored.
He said the facility was undergoing test runs, after which commercial dry runs and certification by the Standards Organisation of Nigeria (SON) and the National Agency for Food and Drug Administration and Control (NAFDAC) would precede full market rollout.
On power supply, Asemakaha said BIPC had introduced Low Pour Fuel Oil (LPFO), which was expected to reduce production costs by 40 per cent compared with diesel.
He said a 5,000 KVA transformer could provide up to 16 hours of electricity, while a dedicated two-megawatt power supply was being finalised and was expected to reduce energy costs by a further 22 per cent.
Asemakaha added that BIPC had engaged foreign expatriates and technicians for critical rehabilitation works and was planning a Technical Management Agreement with COFCO Engineering.
He said COFCO had deployed five engineering teams to the facility, while BIPC had employed 47 workers, comprising 18 engineers and technicians and 29 operators.
The GMD further said BIPC had registered 2,847 soybean farmers across 12 Local Government Areas (LGAs) and would offer N620,000 per tonne for soybeans, which he said was 18 per cent above the prevailing price offered by middlemen.
He said aggregation centres would be established in Taraku, Gboko and Otukpo, with a combined storage capacity of 3,000 tonnes.
According to him, more than 100 trucks of soybeans were ready for delivery, while three trucks, representing 90 tonnes, would be used initially for test-running and calibration.
Asemakaha projected that the factory, when operating at full capacity, would create 1,500 direct and more than 5,000 indirect jobs, with an annual turnover of N8.2 billion.
He added that Taraku Mills would save more than 2.5 million dollars annually on edible-oil imports.
The GMD said BIPC would hold an Open Factory Day from Oct. 1 to Oct. 30 to showcase the rehabilitation process and the factory’s readiness for production.
On previous lease arrangements, Asemakaha said BIPC’s 2024 Root Cause Analysis showed that non-debt commitments had eventually become financial burdens.
He said the development prompted the company to rehabilitate the factory before considering any future Public-Private Partnership (PPP) arrangement.
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