1 / 24

Part 1 :A case study of paint manufacture in Nigeria Eng. S.I.C. Okoli – Protective Coatings Manufacturers Nigeria (PC

Part 1 :A case study of paint manufacture in Nigeria Eng. S.I.C. Okoli – Protective Coatings Manufacturers Nigeria (PCMN). Measuring local content in manufacturing: A case study of paint manufacture in Nigeria. Overview. Measuring local content in manufacturing:

lan
Download Presentation

Part 1 :A case study of paint manufacture in Nigeria Eng. S.I.C. Okoli – Protective Coatings Manufacturers Nigeria (PC

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Measuring local content in manufacturing: A case study of paint manufacture in Nigeria Dr. Michael Warner – Local Content Solutions Eng. S.I.C. Okoli – Protective Coatings Manufacturers Nigeria (PCMN)

  2. Part 1 :A case study of paint manufacture in Nigeria Eng. S.I.C. Okoli – Protective Coatings Manufacturers Nigeria (PCMN) • Measuring local content in manufacturing: • A case study of paint manufacture in Nigeria Part 2 : Measuring local content in manufacturing Dr. Michael Warner – Local Content Solutions

  3. Overview • Measuring local content in manufacturing: • A case study of paint manufacture in Nigeria

  4. Overview of PCMN development 100% local manufacture 100% Nigerian ownership Manufacturing license signed PCMN becomes Plc 60% Nigerian ownership Semi finishing 40% Nigerian ownership Distribution license Fully imported product 100% foreign ownership 2000 2002 2004 2006 2008 2010 2012 2014 • Measuring local content in manufacturing: • A case study of paint manufacture in Nigeria

  5. Overview of PCMN personnel development Number of staff • Measuring local content in manufacturing: • A case study of paint manufacture in Nigeria

  6. Overview of PCMN capacity development New factory proposed 2015 Import / production levels (litres per annum) Capital expansion Phase II increases capacity • Measuring local content in manufacturing: • A case study of paint manufacture in Nigeria

  7. Importance of paint manufacturing • Global cost of corrosion > $2 Trillion per annum • Likely cost to Nigerian economy = towards $10 billion dollars per annum* • Nigerian investment to increase dramatically in next 10-20 years • Offshore oil and gas / onshore processing / transmission pipelines • Passing of PIB into law will release projects resulting in increased demand • PCMN positioning its capacity plans to capture a large % of market • Upstream / downstream and M&R activities • Measuring local content in manufacturing: • A case study of paint manufacture in Nigeria

  8. Local content levels in paint manufacturing Nigerian heavy duty protective coatings market estimate PCMN Projected capacity Million litres per annum • Measuring local content in manufacturing: • A case study of paint manufacture in Nigeria

  9. License History • License manufacturing agreement entered into 15th May 2009 • Covers manufacturing and use of registered trademarks • International Paint is a major supplier of protective coatings globally • Part of the AkzoNobel group with turnover > $ 18 billion • Extensive oil and gas experience globally • License agreement catered for • Establishing manufacturing plant in Lagos • Transfer of initial product range and associated technical support • Guidance on factory start-up and regular auditing • PCMN now accredited to ISO 9001: 2008 • Measuring local content in manufacturing: • A case study of paint manufacture in Nigeria

  10. Advantages of license technology • Measuring local content in manufacturing: • A case study of paint manufacture in Nigeria

  11. Capacity Development - Challenges • Difficulty in forward forecasting • Associated Impact of stock on working capital • Capacity building needs to be proactive • Role of operators • Forecasting assistance • Identifying associated bolt-on opportunities • Measuring local content in manufacturing: • A case study of paint manufacture in Nigeria

  12. Capacity development (continued) 2000 2002 2004 2006 2008 2010 2012 2014 • Measuring local content in manufacturing: • A case study of paint manufacture in Nigeria

  13. Capacity development (examples) • Addition of 2 off 2400 litres high speed dispersers (previous slide) • Addition of 6 off 2000 litre “pans” for mixing • Further capacity expansion planned for (5,000 litre pans) • Installation of semi automatic piston type filling line • Associated infrastructure (generators etc) • Measuring local content in manufacturing: • A case study of paint manufacture in Nigeria

  14. Overview of PCMN personnel development Number of staff • Measuring local content in manufacturing: • A case study of paint manufacture in Nigeria

  15. Manufacturing multiplier • The Local content Law gives clear economic benefit to Nigeria • Manufacturing offers significant benefit to national (Macro) AND local (Micro) economy • Increased personnel required to operate manufacturing versus distribution • Nigerian ownership is critical to the further development of the economy and the multiplier effect coming into place – for every 1 job directly created 10 additional downstream jobs are created • PCMN is proud to be at the forefront of Nigerian content development in paint and coatings manufacture • We look forward to partnering with NNPC and the oil majors to grow the Nigerian Economy into the powerhouse it should be in Africa. • Measuring local content in manufacturing: • A case study of paint manufacture in Nigeria

  16. In summary • Capacity is available • Proven in-country capacity should be supported • Economic means • Enforcement • Expanding markets to utilise Nigerian manufacture • Regionally • Multinational projects • Expanding portfolio • Linking proven manufacturers to customers • Expanding visibility • Infrastructure project requirements • Earlier involvement • Measuring local content in manufacturing: • A case study of paint manufacture in Nigeria

  17. Part 1 :A case study of paint manufacture in Nigeria Eng. S.I.C. Okoli – Protective Coatings Manufacturers Nigeria (PCMN) • Measuring local content in manufacturing: • A case study of paint manufacture in Nigeria Part 2 : Measuring local content in manufacturing Dr. Michael Warner – Local Content Solutions

  18. Background to metric selection • Increasing clarity on metrics and reporting for operators • Lack of visibility on requirements – downstream supply chain • Metrics should • Provide details on Nigerian content • Measure of ability to serve the market • Goods or services • Currently limited to single point activities i.e. supplier assessments • Metrics may need to be adjusted to reflect the organisations business • Supply chain needs to be proactive • Work in progress • Measuring local content in manufacturing: • Selecting Nigerian content metrics for the paint industry

  19. Key areas of measurement • Measures identified to • Indicate Nigerian content • Identify the suitability of the business to serve the market • Currently being finalised prior to initiating monitoring • Measuring local content in manufacturing: • Selecting Nigerian content metrics for the paint industry

  20. Accuracy of measures • Care should be taken when selecting national content measures • Metrics may be divided into 3 main types • Erroneous – [Insert definition] • Proxy – [Insert definition] • Accurate – [Insert definition] • Some erroneous metrics may provide useful background information into supply chain • Should be clearly identified • How to measure relationship between licensee and licensor? • Measuring local content in manufacturing: • Selecting Nigerian content metrics for the paint industry

  21. Sample measures – manufacturing and services • Measuring local content in manufacturing: • Selecting Nigerian content metrics for the paint industry

  22. Sample measures – manufacturing and services • Measuring local content in manufacturing: • Selecting Nigerian content metrics for the paint industry

  23. Local content in manufactured paint • Assessing using drill down method for national content in each paint material • Can be used for domestically manufactured OR imported • Can be utilised with local content calculator • Limited visibility as it contains proprietary formulations belonging to licensor Michael – Please can you insert this description I was thinking of the drill down slide from the training? • Measuring local content in manufacturing: • Selecting Nigerian content metrics for the paint industry

  24. Conclusion • Paint industry is an important part of supporting infrastructure development • License technology with globally recognised technology provider offers significant benefits • Offers potential for rapid start-up and capacity development • More work needs to be done on visibility of metrics for supply chain • Further guidance on national content metrics • Government • Operators • Choice of metrics is important for correctly identifying national content • THANK YOU • Measuring local content in manufacturing: • Selecting Nigerian content metrics for the paint industry

More Related