IMI: Giant strides of a Nigerian company
Under the present administration, the slogan of economic policy is transformation. Transformation is targeted at increasing the efficiency of the productive sectors of the nation’s economy. Well handled, the agenda of transformation is expected to assist to achieve the goal of Vision 20:2020 in the foreseeable future.
Integrated Medical Industries Limited (IMI), based in Port Harcourt, Rivers State, is one Nigerian company that is gradually transforming its operations to achieve efficiency, increased production and competitiveness on a global scale. The company, owned by the Rivers State government with modest shareholding by the Federal Government, was established to produce auto-disable syringes, but over time it has expanded to produce other medical consumables like drips, surgery gloves, etc.
IMI is the first company in Nigeria and in West Africa to embark on large capacity production of syringes, and the second such company in the whole of Africa. Recently, in Austria, the company had a test-run of its brand new independent power source. The power source is part of the company’s expansion programme worth about $275m and, when completed, will make IMI Ltd one of the world’s leading manufacturers of syringes and self-sufficient in its power needs. The expansion programme will enable the company to provide several hundred new jobs for Nigerians as well as serve as a veritable platform for the transfer of significant technology and management skills in line with the objective of its founders, the Pan African Health Foundation (PAHF).
The success of the expansion effort of the company shows that Nigeria can become a model in industry and manufacturing given the right environment and committed management.
It should be noted that the Federal Government is a minority shareholder in the company, though the Rivers State government has borne most of its financial burden. For Nigerian companies and entrepreneurs to excel, it might be necessary for the Federal Government to lend some support to initiatives of this type. In the case of IMI, the Federal Government signed an agreement to regularly make bulk purchases of all the products of the company to support its effort and guarantee its profitability. This is the time that the latter should activate this agreement to enable the company sustain its production level, increase job opportunities and transfer relevant technology to Nigerians.
The IPI power plant, built by GE Jenbacher GMBH & Company, a subsidiary of General Electric, is of the 624 engine variety and will after installation provide 14 megawatts of electricity to IMI’s manufacturing plants in Port Harcourt.
The GE 624 engine, which is the world’s first 24-cylinder engine, is being commissioned in Africa for the first time.
IMI currently produces about 160 million syringes a year. By the time the company’s expansion programme is completed in 2014, its production capacity will rise to 1.3 billion syringes, 1 billion hypodermic needles, 105 million IV-giving sets and 90 million litres IV solution per annum.
After the test-run, the chairman of IMI, Sampson Parker, declared that “everything is coming together and we are confident that the expansion programme of the factory is on the right course”, adding further that the company’s expansion programme is part of the strategy of the present administration in Rivers State to create an alternative economy aside oil for the future of the state.
Iheanacho is a management consultant based in Port Harcourt.
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