Business How Auto Assembly Plants Will be Set up in Nigeria- Aminu Jalal

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LequteMan

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Nigeria - Mr. Aminu Jalal, the Director-General of the National Automotive Design and Development Council (NADDC), on Tuesday said auto plant investment in the country have been broken down into three stages.

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“The reason why we break the assembly operations into three is that a new vehicle assembly plant is quite expensive to set up.

“If you are setting it up, the minimum you can do will cost you over $50 million (N11 billion) for about 10,000 units per year.

“After about a year, they start with SKD 2 (Semi-Knocked Down), which is a painted body, bringing in the internal and external fittings.

“Then you move to SKD1 where you have a body that is not painted, you have to paint it and so on.

“Then you move to CKD 1 (Completely- Knocked-Down) when you have to weld all the pieces together, paint and do the assembly.

“ That is a transition in 12 months to the next phase,’’ he said according to The Nation.

Jalal, however, said that Innoson Motors had already started doing CKD.

He said Ashok-Leyland buses were CKD while Peugeot Automobile Nigeria (PAN) already had the full complement of investment in CKD and would start CKD in 2016.
 
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