President Nana Addo Dankwa Akufo-Addo has officially opened two factories operating under government’s One-District, One-Factory (IDIF) flagship initiative in the Central Region as part of a major policy by the current administration to promote industrialisation in the country.
The companies were APPED Cylinder Factory and Rikpat Company Limited, an indigenous Ghanaian company with total investment of $8 million, which has the capacity to produce 350 metric tons per day of wide range of lubricants for both automotive and industrial usage.
Inaugurating the two factories on the same day on Friday, the President indicated that “it is the first time I have done so since becoming President, and it is a day I will not forget”.
The first port of call by President Akufo-Addo was the APPED Cylinder Factory, which has employed some 250 people, and it is expected to employ about 500 people at full capacity.
The company was established in January 2019 to participate in Government’s flagship industrialization programme.
Construction of the factory started in 2019 and was completed in the year 2021 with the commencement of commercial production and operations in the month of December the same year.
APPEB Company is the largest Liquefied Petroleum Gas (LPG) cylinders manufacturing in Ghana, in terms of production capacity with an installed capacity of 4,000 to 5,000 (6kg /15kg) gas cylinders per day.
The current production capacity is about 2,000 cylinders per day due to the current market demand.
The company imports mild steal from China as the main raw material for production.
President Akufo-Addo reiterated government’s continued commitment to providing strategic support to companies and enterprises, such as APPEB, operating in Ghana.
“We will continue to enhance the existing incentive framework designed to make 1D1F designated companies more competitive and sustainable.
“The incentives, which include tax holidays, import duty waivers, and interest rate subsidies, are designed to help build the capacities and competitiveness of these enterprises, and to position them for greater productivity and efficiency.
“We are waiting patiently for Parliament to give its approval to the fiscal incentive package, and I ask, respectfully, that Parliament expedites action on the matter, which has been, somewhat, delayed. It is important for investors that the legal processes for the grant of the package be completed as soon as possible”, he added.
President Akufo-Addo encouraged the proprietors and management of APPEB Cylinder Manufacturing Ltd to take further advantage of this package, and establish similar industrial enterprises in other parts of the country.
About RIKPAT
The broad range of product offerings of Rikpat include Engine oils of different grades, Brake fluids, Industrial oils, Greases and Radiator Coolant for both local and foreign markets.
According to President Akufo-Addo, RIKPAT “is going to support the Ministry of Trade and Industry’s efforts to build a vibrant automotive industry in the country. I encourage all public institutions to procure their lubricants from domestic manufacturing companies, such as RIKPAT. It is the surest way of helping the company to recoup its investment, expand its operations, and create more jobs.”
He added that, “Government remains committed to supporting private sector operators, like RIKPAT, to become globally competitive, and, thereby, take advantage of market integration frameworks such as the African Continental Free Trade Area (AfCFTA), whose Secretariat has been established and commissioned in Accra.”
