We have no intention of exiting Nigeria – WEMPCO

The Western Metal Products Company (WEMPCO), owners of Lagos Oriental Hotel has described as false reports that the group was planning to end its business operations in the country.

There has be speculation that following the demise of its founder, K.F Tung in March and the challenging business environment in the country, the Group may be planning to diversified its interest in Nigeria, beginning with Oriental Hotels.

Recall that there have been reports of financial crisis facing the group which has led to the closure of no fewer than 19 enamelware firms by the group.

The group was said to be facing a huge debt burden of N90bn, and was therefore planning to sell its flagship five-star Oriental Hotel on the island and considering exiting Nigeria.

It was gathered that WEMPCO’s trouble stemmed from the influx of substandard roofing sheets smuggled into Nigeria from Cameroon and other neighbouring countries.

However, in a statement released by the group, it said there has never been and there is no intention by the WEMPCO group to exit Nigeria as stated in the reports.

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The company said despite the challenging business environment, its proposed divestment from Lagos Oriental Hotel was purely a business decision.

“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.”

On the controversy surrounding Oriental Hotel, the company said, “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.

“Although the recent spate of advertisement of the Hotel was not initiated or authorised by our Group, to divest in the asset would simply be a commercial decision based on the merits of a reasonable transaction.

“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.”