The Group Managing Director/Chief Executive Officer of Chemstar Paints Industry Nigeria Limited, manufacturers of Finecoat and Shield Paints, Mr. Aderemi Awode, says business environment has been very tough and challenging for the paints industry in Nigeria.
He attributed this to the high rate of foreign exchange, given the fact that over 60 per cent of the sector’s raw materials are imported.
He said that the low disposable income of the people had also negatively affected the performance of the sector in the past three years.
Fielding questions from journalists during the 2017 GMD/CEO Annual Merit Awards for staff members, the Chemstar CEO said, “For the paints industry, it has been tough and challenging in the last three years. The high rate of forex and low disposable income of Nigerians, have affected our capacity utilisation because paints are the last in the chains of people’s demands.
“The issue of power is yet unresolved and we rely mostly on diesel to power the generators. We have been running the company without meaningful profit in the last three years.
Awode, however, said that despite the challenges, Chemstar Paints Industry found it extremely imperative to reward its outstanding members of staff.
He said that the GMD/CEO Annual Merit Awards was a yearly event instituted by the GMD to reward outstanding staff members and winners in the annual staff games and sporting competition.
On the essence of the GAMA, Awode said, “It is a day set aside every year to celebrate, give awards and gifts to members of staff who have diligently served the company for as long as five to 15 years, as well as the winners of the annual games/sporting competition instituted for the workers to keep them fit and harness their sporting talents.”