The unregulated importation of Aluminium profiles is killing its local production in Nigeria, the Vice Director of Rongtai Aluminium, Joneay Lei, has said.
According to him, there is a large number of importers who bring in the product and sell below cost price, adding that the uncontrolled importation was not helping local production.
The Chinese producer, who raised these issues in an interview with journalists during the two-year anniversary of the company in Abuja, said that lack of protection for local producers could hurt the aluminium market and discourage new investors from coming into the business.
The company, which has its headquarters in Benin city, Edo State, also distributed education materials and cash to two schools as part of the company Corporate Social Responsibility.
Lei said, “The challenge we are facing is that there are too many importers, especially the small-scale ones; they group together to bring just one or two containers in a month.
“In order to pay off the money they owe their suppliers from China for the goods in time, they would sell way below market price, which is affecting the market order in a serious way.”
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He said plans were already on to discuss the challenges with the Manufacturers Association of Nigeria so as to seek possible solutions.
“We are trying to make approaches to MAN to see if there’s any possibility to increase the customs duty for importation of aluminium profile. They replied that they would try and make suggestions to Nigerian Customs Service, so as to maintain a good order in the local market,” Lei said.
He said his company, which started business with two machines two years ago, now had 18 pressing machines with a total workforce of more than 600.
