NIGERIA - Resins.

There are synthetic resin plants in Nigeria run by the private sector. They produce non-mouldable resins, especially polyvinyl acetate and alkyd resins for the paints, adhesives, lacquer, glues and varnish industries. The main producers of these resins are NYCIL, Niger Chemicals Co., Nigerian Hoechst Ltd. and Chemlap Nigeria Ltd. These companies are all located in the southern part of the country.

Nigeria used to import much of its polymer resin requirements. These included PP - with Phase One production unable to meet demand - polyvinyl chloride (PVC), LDPE, HDPE, high impact polystyrene and general purpose polystyrene. But with the completion of Phase Two, in theory, its needs for PP, LDPE and HDPE were to be met by local production.

Local demand for petrochemicals has grown rapidly since the mid-1980s, both for household and industrial use. The largest consumers are the construction, automobile, furniture, engineering, electrical and agriculture and food industries.

PP is used for a wide range of requirements, from plastic bags, sacks and crates to household utensils and automotive parts. The the refinery is in operation the LAB from Kaduna provides base materials for detergent manufacturers such as Paterson Zochonis and Lever Brothers.

The Aluminium Smelter Co. (Alscon) has a 193,000 t/y smelter at Ikot Abasi, on stream since 1997 at the cost of $1.5 bn. Alscon is owned 70% by the government, 20% by Ferrostahl of Germany and 10% by Reynolds of the US. It suspended operations in June 1999 because it was unable to raise a $100m working capital. Production was resumed in late 1999. But since 1997 the plant has operated well below capacity.

Nigeria has a relatively large industrial infrastructure which requires modernisation.