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Tag: steel

  • African steel company debunks shutdown of facility

    African steel company debunks shutdown of facility

    The Management of African Steel Limited has denied recent media reports claiming that the Ikorodu Steel Factory was shut down by the Standard Organization of Nigeria over standard infractions, stating that the story is false.

    A statement signed by the director of the factory, Ravi Sharma, attributed a report to the unfair business practices of some competitors who seek to gain an advantage.

    It explained that a team from SON recently visited African Steel Ikorodu as part of their regular oversight visit. During the visit, the team took inventory of the already manufactured steel products and collected samples for further regulatory processes, with proper documentation.

    The company is aware that similar regulatory steps were undertaken by SON to the premises of other steel manufacturers across the country and at no time did SON Officials shut down the African Steel Limited premises in Ikorodu.

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    He said: “The African Steel Limited is a member of the African Industries Group which commits to the highest ethical standards in all its operations in Nigeria and across the globe. We, therefore, assure our numerous Customers of quality products at all times and advise them to ignore untrue publications.

    The company is committed to upholding the highest standards of its manufactured products and providing services that conform with all regulatory requirements given its huge investment in the Nigerian economy which includes an integrated iron ore mining, processing and steel production plant located in Kajuru, Kagarko Local Government Area of Kaduna state with a capital outlay in the region of $600m.

    Speaking, the director of product certification, SON, Enebi Onucheyo confirmed that neither the facility of the company nor those of any other Steel manufacturer was shut down in the latest exercise. The only activity that took place when SON visited was that on-the-spot inspections were carried out, inventories and samples were taken and products were kept on hold with proper documentation to enable SON to conduct laboratory tests and analysis to arrive at informed conclusions in line with the organisation’s standards operating procedure.

    According to him, the SON nationwide regulatory action was part of routine exercises usually carried out periodically without notice, to checkmate the production and circulation of substandard iron rods in the Nigerian markets. SON is determined to clamp down on standards infractions in all sectors of the economy with particular emphasis on products classified as life-endangering.

    Such infractions will be duly prosecuted in line with the provisions in the SON Act and other extant laws of the Nation as he calls on stakeholders to continue to share valuable information on product standards and safety with SON and other regulatory authorities in the overall interest of the Nation’s economy and the wellbeing of the citizens.

  • Tinubu gets briefs on $10b investment prospects in steel sector

    Tinubu gets briefs on $10b investment prospects in steel sector

    A revitalised steel industry will stimulate economic growth and create opportunities for talented entrepreneurs, President Bola Ahmed Tinubu said yesterday.

    He spoke after receiving briefs on $10 billion investment prospects in steel development from the Minister of Steel Development, Prince Shuaibu Abubakar Audu and his Defence counterpart, Mohammed Badaru.

    According to a statement by his spokesman, Ajuri Ngelale, the President noted that when Nigeria manages to develop its energy and steel sectors sufficiently, industrialisation will be a reality.

    The statement reads: “We will remain unyielding in our determination to build a Nigeria where every citizen has an equal opportunity to prosper and achieve their dreams. New investments in steel production will spur the growth of so many sectors. Industrialization will be a reality in our country with sufficient energy and steel.

    “Nigerian steel will undergird our economy and other economies in our region in future years. I am glad that members of my cabinet have adopted my approach to attracting new investments and job opportunities for our people. Hard work is the only true pathway. We will not relent.”

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    The statement said the ministers informed the President of their discussions with a Chinese firm – Luan Steel Holding Group – to build a new steel plant in Nigeria, as well as to commence the production of military hardware in the Ajaokuta Steel Plant.

    A delegation, led by the two ministers had visited Hefei and Guangzhou regions of China to hold talks with the Luan Steel Holding Group Chairman, Mr. Wang Jianbing; the Chief Executive Officer of the Company, Mr. Xiao Weizhan and other senior executives of the Chinese firm.

    The company plans to invest billions of dollars in Nigeria to build the new steel plant.

    Audu’s brief followed the President’s approval to restart the Light Steel Mill (LSM) section of the Ajaokuta Steel Complex for the production of iron rods. Restarting the section is expected to cost N35 billion.

    According to the minister, several financial institutions have been provided with Offer Letters for this transaction and that the project has capacity to create 5,000 direct and indirect jobs.

    The Steel Development minister also informed the President of discussions with representatives of Jindal Steel Group, an India firm.

    On the sideline of the G-20 meeting in New Delhi, India in September year, Jindal Steel Group indicated interest to invest about $5 billion in a new steel plant in Nigeria.

    The company is now weighing the options acquiring existing plants or to set up Greenfield plants.

    According to the minister, upon the completion of these pacts, about $10 billion worth of new investments in both new and existing steel plants in Nigeria will be established, which will create over 500,000 direct and indirect jobs in the steel industry.

  • Nigeria to harness unexplored steel resources, says minister

    Nigeria to harness unexplored steel resources, says minister

    The Minister of State for Steel Development, Uba Ahmadu, has reiterated the ministry’s commitment to harnessing the country’s unexplored resources while preserving the ecological balance for a sustainable and thriving future.

    Ahmadu, who spoke during a familiarisation visit to the National Steel Raw Materials Exploration Agency in Kaduna, added that the ministry’s vision extends beyond extraction, saying it resonates with responsible utilisation and environmentally conscious practices.

    He said: “The pursuit of steel raw materials is not merely an industrial endeavour; it’s a cornerstone of our progress, underpinning infrastructure, innovation, and national development. Here in Kaduna, where the ground whispers tales of untapped resources, we stand at the threshold of potential prosperity.

    “The rich ores and unexplored terrains symbolise our collective opportunity to bolster our industrial landscape. This agency’s dedication to exploration, innovation, and sustainable mining practices holds the key to unlocking these treasures, not just for today, but for the generations that follow.

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    “Our vision extends beyond mere extraction; it resonates with responsible utilisation and environmentally conscious practices. We’re committed to harnessing these resources while preserving the ecological balance for a sustainable and thriving future.

    “Today marks not just a visit, but a promise—a commitment to support, enhance, and propel the National Steel Raw Materials Exploration Agency forward. With the backing of our government, we aim to foster partnerships, invest in research, and encourage a thriving ecosystem that enables the sustainable development of our mineral resources.

    “Let us all join hands, united in our pursuit, towards a future where the untapped potential beneath our soil transforms into the steel structures that support our nation’s growth. Together, we’ll pave the path to a stronger, more resilient and prosperous Nigeria.”

  • Nigeria needs iron, steel, says FUTA don

    A professor of Metallurgical Engineering says robust government and private sector investment in the processing, smelting and refining industries would enhance Technological Entrepreneurship (TE), boost local capacity to manufacture spare parts and ultimately resuscitate the country’s moribund automobile industry.

    Prof Benjamin Adewuyi said this while delivering the 94th inaugural lecture of the Federal University of Technology Akure (FUTA) titled: “Metals and Materials: Creating Technological Entrepreneurial Potential.”

    Adewuyi said no country could achieve meaningful development without local capacity to produce iron and steel through TE in the metal sector.

    He said for Nigeria to join the league of countries with vibrant manufacturing sector, it should prioritise the iron and steel industry and create incentives that would lead to the development of basic spare parts industries to provide substitutes for imported varieties.

    This, he said, would enhance local technologies and give the needed fillip to the manufacturing sector and aid the resuscitation of the automobile industry.

    Adewuyi, the immediate past president of the Nigerian Metallurgical Society, said the ministry of science and technology in conjunction with the ministry of mines and steel development should come up with a strategic plan for TE by introducing cluster cottage industries and Technology Parks for the metal and materials sector.

    The Don said the advantages accruable to Nigeria from the development of TE in the metal and material sectors were enormous and included job opportunities, acquisition of technical skills, acceleration of industrial development, exploitation and development of raw materials and local technologies.

    Adewuyi said Nigeria was blessed with mineral and natural resources that can be harnessed for both economic and strategic reasons.

    He added that government should, as matter of urgency, fund and encourage problem-solving research and technology that are adaptable to the local environment to provide opportunities for indigenous scientific and technical innovations.

    Addressing the academia, Adewuyi said tertiary institutions should engage in science and technological research with the aim of solving local problems of housing, food, transportation, energy, health, portable water, pest control and security.

    In his remarks at the well-attended lecture, the Vice Chancellor, Prof Joseph Fuwape praised Adewuyi’s dexterity in the delivery of the lecture.

  • Nigeria needs iron, steel, says FUTA don

    A professor of Metallurgical Engineering says robust government and private sector investment in the processing, smelting and refining industries would enhance Technological Entrepreneurship (TE), boost local capacity to manufacture spare parts and ultimately resuscitate the country’s moribund automobile industry.

    Prof Benjamin Adewuyi said this while delivering the 94th inaugural lecture of the Federal University of Technology Akure (FUTA) titled: “Metals and Materials: Creating Technological Entrepreneurial Potential.”

    Adewuyi said no country could achieve meaningful development without local capacity to produce iron and steel through TE in the metal sector.

    He said for Nigeria to join the league of countries with vibrant manufacturing sector, it should prioritise the iron and steel industry and create incentives that would lead to the development of basic spare parts industries to provide substitutes for imported varieties.

    This, he said, would enhance local technologies and give the needed fillip to the manufacturing sector and aid the resuscitation of the automobile industry.

    Adewuyi, the immediate past president of the Nigerian Metallurgical Society, said the ministry of science and technology in conjunction with the ministry of mines and steel development should come up with a strategic plan for TE by introducing cluster cottage industries and Technology Parks for the metal and materials sector.

    The Don said the advantages accruable to Nigeria from the development of TE in the metal and material sectors were enormous and included job opportunities, acquisition of technical skills, acceleration of industrial development, exploitation and development of raw materials and local technologies.

    Adewuyi said Nigeria was blessed with mineral and natural resources that can be harnessed for both economic and strategic reasons.

    He added that government should, as matter of urgency, fund and encourage problem-solving research and technology that are adaptable to the local environment to provide opportunities for indigenous scientific and technical innovations.

    Addressing the academia, Adewuyi said tertiary institutions should engage in science and technological research with the aim of solving local problems of housing, food, transportation, energy, health, portable water, pest control and security.

    He said the outcome of researches should be for practical applications and commercial purposes. For that to happen, he said there must be adequate synergy between the academia, entrepreneurs, government.

    In his remarks at the well-attended lecture, the Vice Chancellor, Prof Joseph Fuwape praised Adewuyi’s dexterity in the delivery of the lecture.

  • ‘Ajaokuta Steel Complex belongs to Federal Govt’

    The Permanent Secretary, Ministry of Mines and Steel Development, Muhammed Abbas has said there is no contention on Federal Government’s ownership of Ajaokuta Steel Company.

    Abbas, in a statement yesterday, added that any claim stating otherwise contradicts the position of the minister who reaffirmed the government’s ownership.

    The statement reads: “The attention of the Ministry of Mines and Steel Development has been drawn to recent media reports, where  Dr S.O. Nwanbuokei, a director of Global Steel Holdings Limited (GSHL), was quoted as saying that the protracted litigation surrounding the ownership of the Ajaokuta Steel Complex had not been resolved.

    “His claims contradict the position of the Honourable Minister of Mines and Steel Development, Dr Kayode Fayemi, who reaffirmed the Federal Government’s ownership of  the Ajaokuta Steel Complex, during the just concluded Nigerian Mining Week, as he has done in similar fora.

    “The Ministry’s position, as stated by the  minister, is that Ajaokuta Steel Complex belongs to the Federal Government of Nigeria, and there is no contention about this fact.

    “The Federal Government does not need any mediation to determine its ownership of Ajaokuta Steel Complex as the integrated steel complex has always been the property of FGN.”

  • Nigeria spends $3.5b yearly on steel importation

    Nigeria spends $3.5b yearly on steel importation

    Nigeria spends over $3.5billion yearly on the importation of steel products, Mines and Steel Development Minister Dr Kayode Fayemi has said.

    He told reporters after a town hall meeting with players in the industry in Lagos yesterday that as a result of the huge spending on steel importation, the Federal Government resolved to make the Ajaokuta Steel Company work by privatising. This, said Dr Fayemi, will save the nation the huge foreign exchange and job export.

    As a demonstration of the government’s seriousness, Fayemi said the expression of interest (EoI) by investors, who want to acquire the steel company, will open in six months time.

    “The steel industry still remains the backbone of industrialisation in any country. Any country that wants to make headway in manufacturing and industrialisation must pay particular attention to steel development.

    “In Nigeria, we utilise about 7 million metric tons of steel on annual basis and we produce less than 3million tons and from scrap mainly. And even the scrap is being depleted now; so we run the risk of depending almost solely on importation. We spend over $3.5 billion importing steel products into Nigeria annually; you can see the opportunity cost and the importance of ensuring that Ajaokuta comes on stream. That’s why government has been determined to ensure that the litigation around it was resolved and we can put it to those who have the technical knowledge and financial capacity to intervene and bring it to life in a manner that liquid steel can be produced from our own iron ore endowment in the country. Then the liquid steel will be made available to rolling mills across the length and breadth of Nigeria to use for direct steel production rather than depending on scrap metals.

    “The timeline for the Expression of Interest (EoI) will happen in the next six months. I’m not saying we are bringing it to life in the next six month but the process of those who have an interest in coming to put Ajaokuta into practical use within the period I mentioned. We have had a number of players both local and foreign that have shown interest.

  • Reviving Ajaokuta Steel

    SIR: Ajaokuta Steel Company Limited is a sleeping giant, capable of turning Nigeria’s economy around if given the necessary and sufficient attention. Apart from the high revenue expected from steel production, numerous direct and indirect employment to be generated it will also serve as source of cheap raw material needed for industrial and technological revolution. These and many more benefits that will be derived will do much to strengthen our economy and to bring about the needed diversification.

    The federal government should know that steel technology is not rocket science; even if it is, I still believe that Nigerian engineers can handle any type of job required to put the plant back on its feet. We do know that several types of steel plant exist and their modes of operation, problems and limitations are well known too. All we need to do is undertake an in-depth investigation/analysis to identify the type of plant and the exact problem(s) hindering it from operation, make designs for general improvement and or just proffer solutions to the problems.

    I believe our engineers can come together to achieve this tedious but very important task. A team could be constituted comprising current and past workers of Ajaokuta Steel Company Limited, engineers, administrators etc., to carry out the investigation with the aim of identifying the problems and recommend appropriate solutions.

    In line with the diversification of our economy agenda of the federal government, it is time for the government to put its trust and invest in Nigerian engineers in the steel as well as other sectors. We require little or no services of expatriates to survive as a nation.

     

    • Idris Ohinoyi Muhammedsanni,

    Ameer4mee@yahoo.com

  • Over 4,000 jobs lost in steel sector in two years

    Over 4,000 jobs lost in steel sector in two years

    From 2014 till date, over 4,000 workers in the steel sector have lost their jobs, and many companies have closed down due to economic hardship in the sector.

    At the Steel and Engineering Workers’ Union of Nigeria (SEWUN) 2016 Annual Industrial Relations Workshop in Benin, Edo State, Its president, Comrade Elijah Adigun, said there was no company in the sector that has not engaged in one form of downsizing of workers or the other.

    According to him, the only reason for the redundancy was the scarcity of Foreign Exchange (forex) to import raw materials.

    “You will recall that in my address last year, I reported happenings within our sector in terms of failure of privatisation programme by the Federal Government that sold government’s shares in these industries to non-core investors, thereby rendering the very essence of privatisation totally useless. As we speak, none of these sold government agencies has made any progress,” Adigun said.

    Adigun said the situation had forced many companies to either downsize or shut down.

    “The unemployment situation is seriously bad, yet the government is appealing that they share our pains as if that will bring food to the table. What we need now is massive job creation and not empty slogan that appeals to nobody,” Adigun said.

    He pointed out that no meaningful success wouls be recorded in a country where the national minimum wage was N18,000, adding that no worker can survive with such meagre salary.

    “Government should, therefore, diversify the economy; create massive job opportunities for the army of unemployed youths with a living wage that will distract them from seeking alternative corrupt sources of income to make ends meet,” Adigun recommended.

    The General Secretary of the Union, Comrade Michael Ogbolu, said the union was against the sale of government’s assets, arguing that it will lead to the death of most of the organisations.

    “We are all living witnesses when the previous administrations privatised some wholly and partially owned Federal Government companies, while assuring Nigerians that the programme would lead to increased capacity utilisation aimed at creating jobs for our teeming workforce.

    “Instead, the programme led to the death of most privatised companies, because the companies were sold to entrepreneurs without expertise to manage the companies sold to them,” Ogbolu recalled.

    He said a good example  of the charade was the sale of Steyr Nigeria Limited, Bauchi; Leyland Nigeria Limited, Ibadan; National Trucks Limited, Kano; Volkswagen Nigeria Limited; among others.

    “Having successfully squandered the proceeds of sales of privatised companies and plunged the nation into recession, the same people are flying the kite to sell part of our remaining national assets such as the performing Nigeria Liquefied Natural Gas (LNNG).

    “We wish to call on the conference in session to as a matter of necessity endorse the wise resolution of the labour community to embark on protest should the Federal Government  persist to nurse the dream to further sell part of our performing national assets, as ordinary Nigerians including workers will bear the brunt of the aftermath,” Ogbolu said.

  • Fed Govt supports steel products export

    Fed Govt supports steel products export

    The Minister of Solid Minerals Development, Dr Kayode Fayemi, has restated the government’s support for steel companies to enable them meet  local demand and export their products.

    Dr Feyemi spoke during facility tours of the African Foundries Limited (AFL) in Ogijo Local Government Area in Ogun State, and Western Metal Products Company Limited (WEMPCO) on the Lagos-Ibadan Expressway.

    The minister said  issues that inhibited export of steel products would be looked into with a view to subjecting them to a review that would be acceptable and beneficial to both the government and investors.

    “We will review all options and determine which one is more beneficial to government and the investors,” the minister said.

    He added that the government was determined to create the conducive environment and provide incentives to genuine investors, as part of effort to ensure that the sector 5ourish.

    The Chairman of Africa Foundries Limited, P. K. Gupta, said although the group’s investment in Nigeria was over $1b, with over one million tons of steel products from its six steel plants in the  country, the company had had to grapple with the challenges posed by high cost of gas, multiple taxation, bad roads and unnecessary concessions for importation of products whose superior equivalence are produced in locally.

    Gupta said allocating coal blocks to his company and other genuine investors would enable them to provide more jobs opportuni?es to more people as well as assist them to complete the company’s diverse steel  production processes.

    The Managing Director of WEMPCO, Mr Robert Tung, who lauded the government’s commitment to the steel sector, also urged the minister to look into the issue of multiple taxations, among other issues.