The Abia state government says it has fully recovered Star Paper Mill, Aba and Owerrinta from the Asset Management Corporation of Nigeria (AMCON), marking a major step towards industrial revival in the state.
This is as it has also intensified effort to complete the acquisition of Afro Beverages Limited, Owerrinta.
The Star Paper Mill, a brainchild of Late Nnanna Kalu, was established in the 1970s, as an integrated paper -conversion and paper -products manufacturing enterprise to serve domestic markets.
Governor Alex Otti, speaking during the handover ceremony, held at the Banquet Hall, government house, Umuahia, said that the recovery of the asset is in line with his campaign manifesto of bringing to life all moribund Industries, including Star paper Mills, the Aba Metheological Complex, Ogwe Golden Chicken, Aba Textile Mill, International Glass Industry, among others.
The Governor, who said that his administration, would revive the moribund Star Paper Mill, promised that the industry when fully revived, would create between 3000 -5000 jobs in addition to attracting private sector participation.
” Before closure, Star Paper Mill employed over 1,000 people directly and more than 5,000 indirectly. “Reviving it will create between 3,000 and 5,000 jobs. That, for me, is the ultimate goal—jobs, jobs, and more jobs,” Governor Otti said.
He noted that the Star Paper mill had previously been sold under questionable circumstances, with parts of the agreement breached, noting that it took his intervention with the cooperation of AMCON to recover the asset in addition to refunding the payment made by the company that bought the mill.
The Governor also disclosed that payment for Afro Beverages, another industrial facility under AMCON, was still ongoing, but would be completed in the coming weeks, adding that prospective investors were already on ground to partner in reviving the company.
Governor Otti, explained that his government’s role was to de-risk the investment and attract capable private sector operators and challenged the Aba and Umuahia Chambers of Commerce to rise up to the challenge.
Read also: AMCON gives approval to Abia for resuscitation of Star Paper Mills
” Government’s role is to de-risk the investment and attract capable private sector operators. “Our intention is not to run Star Paper Mills. We are acquiring to give it to the private sector. Leadership is key; without it, even resources fail,” he added.
The state Chief Executive, expressed gratitude to AMCON for its cooperation and assured that the government, would ensure Star Paper Mill becomes profitable, produces goods, and creates employment.
Mike Akpara, commissioner for Industries and Small and Medium Enterprises (SMEs), described the handover as the return of life to local industries and a major step in Abia’s industrial resurgence, announcing that the state government had fully concluded the acquisition of Star Paper Mills Ltd in Aba and Owerrinta with a ₦2.5 billion payment, while an initial ₦500million deposit has been made for Afro Beverages Limited.
He added that a structured ₦500 million bimonthly repayment plan had been put in place to clear the remaining ₦3 billion for Afro Beverages within the 2026 fiscal year.
According to him, the state is already deepening engagements toward reactivating other moribund assets, including International Equitable Industries, KAN Biscuits, and the completion of the Enyimba Hotel, as a five-star facility.
Aminu Mukhtar, executive director, Assets Management (AMCON), while commending the state government for its commitment to recovering the industry, noted that the industry, which had fallen into disuse, due to financial distress, represents more than an asset, describing it as an icon woven into the history of Abia state and Nigeria.
“AMCON does not take over assets to destroy them, but to preserve their value.”Today, we are proud to transfer this preserved industrial giant to a government committed to revitalisation.
“The acquisition of this asset is a milestone for the state’s industrial development,”Mukhtar noted.
He recalled using products from the factory, including exercise books, during his youth and expressed satisfaction that the facility would now be revitalised under state leadership,
He said that the factory would strengthen the local supply chain, boost household incomes, improve the state’s gross domestic product (GDP) and encourage ancillary businesses across Abia.
