Presco Plc

A brief history

When Siat became involved in Presco in 1991, the Company had only the Obaretin Estate with an oil palm plantation size of 3,000 ha. Under Siat’s management, a new expansion programme commenced from 1993 onwards, as a result of which an additional 4,000 ha have been planted at the Obaretin Estate.

In 1996, Presco acquired the 2,780 ha Oil Palm Estate at Ajagbodudu, Delta State (also known as the Cowan Estate). Since than the plantations and social infrastructure have been rehabilitated and all old plantings have been replanted with high yielding planting material.

Apart from the existing estates, Presco has acquired a total area of about 9,000 ha at Ologbo to develop a new plantation of which 2,000 ha have been planted.

Presco has been listed on the Nigerian Stock Exchange since 2002. The Siat Group holds 60% of the shares while 5,000 Nigerian shareholders hold the remaining 40%.

Siat manages Presco under a management contract.

Presco today

As at December 2009, Presco’s operations included:

• 12,500 ha of oil palm plantations,
• a palm oil mill of 40 tonnes ffb/hour,
• a palm kernel crushing plant of 40 tonnes/day,
• a refining/fractionation plant of 75 tonnes/day,
• storage capacity for products of 6,000 tonnes.





Future prospects and strategy

Presco aspires to remain the leader in the oil palm agro-industry in Nigeria. Through its fully integrated production chain (from seedling to finished product) the company is able to produce speciality oils and fats of outstanding quality to customer’s specification and is able to guarantee reliability of supply of its products the whole year round.

By increasing planted areas and improving yields using modern planting material, the company expects its production to grow. In order to cope with this increase, Presco plans to expand its processing facilities accordingly. An investment programme has been put in place for the period 2010 – 2020. This expansion programme will help the company to face its ever increasing demand from its Nigerian clients.

The company’s ten year development program foresees the realisation of 6,000 ha of industrial oil palm plantation at Ologbo for a total estimated investment of € 20 million.

Presco continuously invests in research and development for new products for the food industry.

The Company assists outgrower plantations with the financial assistance of the Edo and Delta State Governments of Nigeria.