AMCON Officially Hands Over Star Paper Mill to Abia Govt

The Asset Management Corporation of Nigeria (AMCON) has formally handed over the long-abandoned Star Paper Mill to the Abia State Government, in a major milestone of industrial revival drive under Governor Alex Otti.

Speaking at the handover ceremony in Umuahia, the Executive Director of AMCON, Aminu Mukhtar Dan’amu, described Star Paper Mill as more than an asset, calling it “an icon woven into the industrial history of Abia State and Nigeria.

Dr. Dan’amu recalled using products from the factory during his youth and expressed confidence that the facility would be successfully revived under the current administration.

He expressed optimism that the revived factory could generate between 3,000 and 5,000 direct and indirect jobs.

He noted that the handover highlights the importance of federal-state collaboration in preserving strategic national assets and driving economic development and commended Otti for his determination in reclaiming the facility.

Receiving the papers, Governor Alex Otti described the recovery of the asset as a fulfillment of his campaign promise to revive moribund industries across the state.

He listed Star Paper Mill, Aba Textile Mills, Ogwe Golden Chicken and International Equitable, among others, as key targets of his administration’s industrial rejuvenation agenda.

Otti disclosed that the mill had previously been sold under questionable circumstances, with breaches in the terms of agreement.

He explained that the asset was recovered through his direct intervention and the cooperation of AMCON, including the refund of payments made by the company that had acquired the facility.

The Governor emphasised that the role of government is to de-risk investments and attract competent private sector operators, pointing out that there is no intention of government running the Paper Mill.

“Like I have said in the past, our intention is not to run Star Paper Mill. Our intention is to de-risk it, lead from the front, and then bring the private sector to come and take charge.

“We are not acquiring to keep, we are acquiring to give you (leadership of ACCIMA/UCCIMA). But, we have taken it. So, we can now call you and say this is the way we want to run it,” Otti stated.

Hei thanked AMCON for its cooperation and assured that the state government would ensure the factory becomes productive, profitable, and a major source of employment.

Earlier, the Commissioner for Industry and Small and Medium Enterprises, Mazi Mike Akpara, disclosed that the state government completed the acquisition of Star Paper Mills Limited with a payment of ₦2.5 billion and has also made an initial deposit of ₦500 million for Afro Beverages Limited, Aba.

The Commissioner noted that engagements were ongoing to revive other moribund assets, stressing that industrial revitalisation would significantly boost the state’s GDP and create thousands of jobs.

The Eagle News reports that the Star Paper Mills Limited, founded in 1976 by renowned Abia-born entrepreneur, the late Chief Nnanna Kalu, was once a major employer of labour, providing thousands of jobs to residents of the state during its years of operation.