Mikano Veers Into Steel Fabrication
TIAs Nigeria makes gains with electricity supply reforms, Mikano, which daily turns out truckloads of high-capacity power generating sets, has wisely diversified its business into steel fabrication.
The Lebanese-run entity, Mikano, which was incorporated in Nigeria 15 years ago, has made a fortune from selling mainly industrial capacity generators, due to years of epileptic electricity supply in the country.
President Goodluck Jonathan-led government has been flaunting its recent record achievement of raising the country’s electricity capacity to about 4,500 megawatts.
As the government steps up efforts to further improve the power situation, Mikano has increased steam at its recently established new business division, which is involved in steel fabrication.
The unit, which boasts of well-equipped factory, specialises in the manufacture of steel cabinets for home, office and industrial use; flush doors, steel chairs and tables, as well as supermarket display shelves.
The steel factory also fabricates electrical, and industrial gear panels; underground and overhead tanks of all sizes; water tankers and water treatment plants; petroleum depots and haulage units; pipelines and flow lines, among others.
As part of its diversification strategy, Mikano had also entered into partnership with Hyundai Heavy Industries, as the official distributor for Hyundai’s range of construction equipment products.
Similarly, Mikano had since 2009 also acted as Nigerian representatives for an international power and automation technologies firm, ABB, to market products as power distribution switchboards, circuit breakers and wiring accessories.
The Nigerian government last week handed over the 15 unbundled Power Holding Company of Nigeria, PHCN, successor companies to private investors, further paving the way for the country’s move towards stable and sufficient electricity supply.
The signing of the Transaction and Industry Agreements (TIA) between the federal government and the successful bidders for 10 generating companies (GENCOs) and five distribution companies (DISCOs), last Thursday, marked the full privatisation of the PHCN.
“It would seem Mikano realised it would not remain ‘business as usual for too long’, hence its veering into other lines of business,” Mr. Francis Soares, an investment advisory services consultant, remarked.