The Western Metals Products Company Limited (WEMPCO), parent company of the WEMPCO Group, has rebuffed media claims that it plans to shut down its business in Nigeria.
Its commitment to Nigeria is unshakeable: In a statement issued on Tuesday, WEMPCO said that despite the financial crisis it was going through, its commitment to the growth of the Nigerian economy remains unshaken.
“We must hereby categorically state that there has never been and there is no intention of the WEMPCO Group to exit Nigeria as stated in the reports. Our Group has been in Nigeria over several decades and have witnessed many cycle of the Nigerian economy.”
WEMPCO’s purported exit nearly caused chaos: Nairametrics had earlier reported that 19 enamelware firms were going to shut down because of the company’s proposed exit.
Addressing the Oriental Hotel controversy: While addressing the sale of the hotel, the company stated that it did not initiate the proposed sale of the company. Instead, it was a commercial decision based on the merit of reasonable transaction. The statement further disclosed that selling off the hotel would not, in any way, hinder its other business projects in Nigeria. This is because the hotel is not the flagship investment of the WEMPCO Group.
“The Lagos Oriental Hotel is a flagship in the Nigerian hospitality business but is not a flagship of the WEMPCO Group. It is an investment made by the Group in 2008, but not part of our core manufacturing business.”
The Group dismissed rumours about relying on Government’s waivers: The Group further spoke on rumours about it relying on Government’s waivers to conduct its business.
“Contrary to claims in the reports that the WEMPCO Group had relied on Federal Government waivers, the Group has never received special concessions outside of those extended to industries as a whole.”
The question about how the company intends to stabilise still stands: Seeing as the company has reiterated that it does not plan to leave Nigeria, stabilising its financial status still remains questionable.
Perhaps, selling off the hotel is the right way to get it back on its feet.