By: Chioma Madonna Ndukwu
AMCON Transfers Star Paper Mill to Abia Government in Push to Revive Dormant Industries
The Asset Management Corporation of Nigeria (AMCON) has formally transferred ownership of the long-abandoned Star Paper Mill to the Abia State Government, opening a new chapter in the state’s drive to bring back its once-thriving industrial base.
The handover ceremony, held at the Government House in Umuahia, marks the end of years of uncertainty surrounding the factory, which was one of Abia’s major employers before it shut down.
Established in 1976 by renowned entrepreneur, the late Chief Nnanna Kalu, Star Paper Mill was a household name, supplying paper products across the country and providing jobs for thousands of residents.
Governor Alex Otti said the recovery of the mill aligns with his administration’s pledge to reclaim and revive abandoned industries across the state.
According to him, several of such facilities collapsed over time due to mismanagement, debt and flawed privatization processes.
He revealed that Star Paper Mill had earlier changed hands under questionable terms, with key conditions breached by the buyer.
This, he said, prompted the state government to step in, work with AMCON to reclaim the asset, and refund the initial payment made during the disputed sale.
Governor Otti assured that the government has no intention of running the factory directly.
Instead, the plan is to stabilise the asset, make it attractive to investors and hand it over to competent private operators. When fully operational, he said, the mill is expected to generate between 3,000 and 5,000 direct and indirect jobs.
He added that similar efforts are ongoing for other distressed assets, including Afro Beverages in Aba, for which payments are nearing completion.
Discussions, he disclosed, are already underway with investors interested in partnering with the state to manage and operate the facilities.
Speaking earlier, AMCON’s Executive Director, Dr Aminu Mukhtar Dan’amu, described the factory as more than just an asset, noting its historical and economic importance to Abia State and Nigeria at large.
He said AMCON was pleased to hand over the mill to a government showing clear commitment to restoring its value.
The Abia State Commissioner for Industry and SMEs, Mazi Mike Akpara, confirmed that the state has completed the acquisition of Star Paper Mills with a payment of ₦2.5 billion, while an initial ₦500 million has been paid toward Afro Beverages Limited.
He noted that reviving these industries would strengthen the state’s economy and significantly reduce unemployment.
The event was attended by leaders of the Aba and Umuahia Chambers of Commerce, senior government officials and other stakeholders, who described the development as a major step toward restoring Abia’s industrial pride.
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