Two leading indigenous companies-Oilserv Limited and Innoson Vehicle Manufacturing (IVM) Limited, have forged a partnership to boost local content development in a deal worth N600 million
Chairman and Group Chief Executive Officer (GCEO) of Oilserv Limited, Engr. Emeka Okwuosa, stated this during a facility tour of IVM Limited plant in Nnewi, Anambra State.
The Oilserv boss explained that the firm which is an Engineering, Procurement and Construction company in the oil and gas industry as part of its commitment to ensure that local content thrives has partnered IVM for the conceptualization, manufacturing and use of the vehicles for oil and gas purposes.
To ensure that the partnership is a success, he said, Oilserv being an indigenous company at the forefront of local content promotion in the country has placed orders for vehicles worth N600 million in the first phase of the deal.
Okwuosa explained that his firm’s alliance with IVM would go a long way to help fasttrack the ideals of local content in the country.
He maintained that the standards of vehicles built by IVM can compete with other brands manufactured abroad.
‘‘You know that the oil and gas industry is highly sophisticated and standards cannot be compromised. So, for us to partner with IVM, that tells you we have followed their track record and done our due diligence to settle for them. I am very optimistic that nothing will go wrong.
I am here today for a visit. We cannot talk about IVM without talking about Chief Innocent Chukwuma, because he is the initiator and founder of the project. He is the one that conceptualized the idea and made it a workable venture.
For us as an EPC company, we are the ones that built most of the pipelines not only in Nigeria but in some other parts of Africa. And in the course of our work, we do develop and use technology. We see IVM as a company that has not only talk the talk but work the work’’.
He noted that most of the vehicles under construction during the facility tour were being designed for Oilserv, adding that to get robust patronage in the oil and gas industry, quality of service must be the watchword.
Commenting on the deal, Group Head, Supply Chain, Oilserv Group, Mr. Chukwuma Nkwodinmah, said the benfit of the deal is enormous because it contributes positively to the profitability of Oilserv as against procuring foreign brands which comes with the challenge of sourcing for scarce foreign exchange.
He noted that the price differential of Innoson brands as against that of foreign ones is also of immense benefit which again contributes to Oilserv profitability in another form.
He added that the patronage of IVM brand of vehicles by Oilserv helps in no small measure to contribute to job creation and also ensures that the company is into continuous production which helps put food on the table for Nigerians, especially those in the eastern part of the country.
In his contribution, Group Chief Finance Officer, Oilserv Group, Solomon Okodugha, said the partnership will further grow local content in the country because Oilserv is a major beneficiary of the local content policy.
He said if IVM is able to grow bigger, the company will definitely employ more people and take a lot more unemployed youths out of the streets, thus helping to contribute to the country’s Gross Domestic Product (GDP).
For his part, General Manager, Operations and Technical Service, Oilserv Group, Engr. Chidozie Obi, said the winning streak in the pact is that both companies are indigenous firms and champions of local content and have shown the world that Nigerians can do things to international standards.
In his remarks, an elated Chairman of IVM, Chief Innocent Chukwuma, said he is happy that Oilserv belives in the Nigerian dream and promotion of local content.
He said over 90 per cent of locally made vehicles in the fleet of Oilserv were IVM brands. This, he said, goes a long way in showing the commitment of Oilserv to the development and growth of the country’s economy and indigenous business as a whole.