Julius Berger exits agro-processing, leases cashew plant to Eko Organic Foods

Julius Berger Nigeria Plc says it has leased out its cashew processing facilities to Eko Organic Food Industries Limited as part of its plan to streamline operations and strengthen focus on its core construction business.

Julius Berger, in a regulatory filing on the Nigerian Exchange (NGX) signed by C.E. Madueke, company secretary, said the decision was approved by its board at a meeting held on September 24.

The move comes five years after the construction giant first announced plans to diversify into agro-processing.

The company said the lease agreement, reached on mutually agreed terms, would ensure continuity in its agro-processing venture while keeping Julius Berger strategically aligned with opportunities in the sector.

“The goal of the Board of Directors and the Executive Management of Julius Berger remains to deliver on the strategy of maintaining and strengthening the company’s competitive advantages in the construction sector, and any other sector it ventures into,” the statement reads.

The company expressed confidence that the market would view the lease arrangement positively, as it reflects its commitment to repositioning and regional expansion.

Julius Berger inaugurated the plant in 2022.

The construction company had said the facility would be its first agro-processing plant and form the cornerstone of its diversification activities.(The Cable)