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Nigerian converter: ELEME to resume production

by ChemOrbis Editorial Team -
  • 07/03/2016 (14:32)
In Nigeria, a converter claimed that the local PP and PE producer ELEME has resumed their operations and that they are readying to supply products to the market as of next week.

ELEME had declared a force majeure on their PP and PE production on the back of a technical glitch in the last week of February. The producer had to halt their operations given an unexpected power failure and it was expected to take around two weeks to resume operations.

According to the buyer, a source from ELEME highlighted that they have been facing feedstock issues for a long time as they have been struggling to obtain feedstock on a regular basis. The converter said, “Therefore, despite their restart, ELEME’s supplies are likely to remain limited unless they can obtain adequate feedstock supplies.”

Regarding demand for their raffia products, the converter complained about quiet buying interest. “Plus, the higher US dollar exchange rate against the naira continues to hamper trade, especially in the import market, while buyers also struggle to open letters of credit at banks,” he added.
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