Welcome, Guest: Join Nairaland / LOGIN! / Trending / Recent / New
Stats: 2,755,469 members, 6,546,363 topics. Date: Tuesday, 19 October 2021 at 08:34 PM

Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta - Business - Nairaland

Nairaland Forum / Nairaland / General / Business / Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta (12037 Views)

Despite Nigeria Border Closure, Benin Republic Maintains Strong Economy - IMF / Banks To Pay N10,000 Fine For Failed Transaction Not Reversed Within 24hrs / FG Appoints Abdul-Akaba Sumaila As Sole Administrator Of Ajaokuta Steel Complex (2) (3) (4)

(1) (2) (Reply) (Go Down)

Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by Rossikki: 4:35am On Jul 19, 2017
NIGERIAN STEEL INDUSTTY ROARS BACK TO LIFE



Business Day
JULY 19TH, 2017


Privately owned steel companies are pumping billions of naira into building new plants, as the need for housing, road and bridge construction expands in the country. This is despite the fact the Federal Government has not been able to revive the Ajaokuta Steel Company years after it was built in 1979.

“We have invested $500 million in Nigeria. We believe that the steel sector is the backbone of any major economy in the world. Without steel, there cannot be any other industry in the real sector of any economy,” said Raj Gupta, chairman of African Industries Limited, which has 12 subsidiaries, including African Steel Mills, Ikorodu Steel Mills, African Foundries, and Abuja Steel Mills.

Similarly, Aarti Steel Nigeria Limited, one of the biggest steel mills in Nigeria, has completed a cold-rolled mill in Ota, Ogun State, with capacity to produce 120,000 tonnes of steel products per annum.

The steel maker spent about N300 billion to complete the mill in March this year. The mill is expected to serve the downstream steel makers in Nigeria, using cold-rolled steel products for the production of home appliances, roofing sheets, metal furniture and filing cabinets, tables and chairs, among others.

“The mill just started in March and it is now fully stabilised. It is producing already. It is a big investment and it will also be good for the Nigerian economy,” Aniket Singal, Aarti Group’s vice chairman, told BusinessDay in Lagos.

Singal said Aarti is already exporting steel to West African countries such as Togo and Mali and is expanding to Central Africa, Ivory Coast, Benin and other parts of the continent, in order to earn more foreign exchange for the Nigerian economy.

Nigeria, Africa’s biggest economy, spends about $3.3 billion on steel imports every year. Eighteen of the 30 steel manufacturers in Nigeria produce about 2.2 million tons a year, with scraps and billets imported mainly from China.

An average of steel products such as standard plates, hot-rolled coil, cold-rolled coil and rebar is $464.7 using Chinese prices, which means Nigeria imports roughly 7.1 million metric tonnes of steel annually.

Steel makers, made up of players in the basic metal, iron and steel and fabricated metal, invested N202.97 billion in the second half of 2016 as against N37.05 billion in the first half.

The sector pumped N1.69 trillion into the Nigerian economy from 2013 to 2015, said the Manufacturers Association of Nigeria (MAN).

Already, Standard Metallurgical Company Limited (SMC) is set to launch a billet mill to produce standard wire rods in Nigeria. The mill will likely create 1,000 jobs in the country.

“This will be the first factory to produce billet suitable for producing standard wire rods in Nigeria. All wire rods produced today in Nigeria are being made from imported billets, but in three months from now, we are going to start producing billets in Nigeria,” Mohammed Saade, managing director, SMC, told BusinessDay.

“Currently, we are producing 300,000 tonnes of wire rods per year. With phase two, we would produce 260,000 tons of billets in Nigeria. Nigeria today is a big market and we are committed to meeting local demands and the surplus can go to the ECOWAS market,” he said.

Qualitec Industries Limited is investing up to N100 billion in Ogun State, according to Oluyinka Kufile, CEO of the firm, who is also the chairman, Basic Metal, Iron and Steel Group of MAN.

A steel company, HongXing Steel Company Limited pledged to pump $100 million in plants and machinery in Nigeria last year.


https://www.businessdayonline.com/nigerias-steel-sector-comes-alive-despite-failed-ajaokuta/

7 Likes

Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by Rossikki: 4:42am On Jul 19, 2017
We need to see more indigenous car manufacturers and similar industries start to use Nigerian-made steel to build their vehicles and products.

10 Likes

Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by clarocuzioo(m): 5:27am On Jul 19, 2017
This is a welcomed development, more of these moves should be encouraged, Federal government should create the enabling environment and legal frame work for this companies to turn to mega industries, I always weep for this nation each time am passing through Ajeaokuta Steel Complex, and I simply ask what kind of selfish and daft leaders do we have, imagine the socio-economic effect of that complex to the Nation if it's working to full capacity, but there it is wasting and nobody is interested in reviving it, when they are preaching diversification of the economy and sharing Paris Club refund.

5 Likes

Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by Nobody: 9:17am On Jul 19, 2017
This is good.. It's 'AWESOME.'

This is what life should be, to discover a problem and then go forth into offering a solution. Offering services to humanity is the only way to become great and rich. About last year, the demand for apartments was so high that looking for one was frustrating. I know how many individuals that needed a flat around the area, they need a place that Won't warrant leaving their job. I went in to offer that service out of sympathy and today, that's one of my major source of income.

Most importantly, impact..

Well done Sia baba

5 Likes

Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by StarPlayer: 9:18am On Jul 19, 2017
Sai baba is doing from a london hospital what that useless Otueke drunken master could not do for 8 good years. angry










Any body that quotes me and say rubbish angry

16 Likes 1 Share

Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by mikeycharles(m): 9:18am On Jul 19, 2017
And they said Buhari is not working, the man has been meeting up to expectations compared to our past leaders

10 Likes 1 Share

Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by Chiaka(f): 9:19am On Jul 19, 2017
VERY GOOD

4 Likes

Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by Cutezt(m): 9:20am On Jul 19, 2017
Good one.

1 Like

Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by three: 9:20am On Jul 19, 2017
Fayemi promised to FIX Ajaokuta promptly

But then again this same Fayemi promised that Ministers will be appointed in one week.


There is a BIG difference between Paper CV vs Actual CV

3 Likes

Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by banme1(m): 9:21am On Jul 19, 2017
if they like
Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by diegwu01: 9:21am On Jul 19, 2017
We will Get there.. let the noise makes continue..

5 Likes

Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by Blue3k(m): 9:24am On Jul 19, 2017
The federal government are jokers. This shows power of private enterprise. Let them sell off all these moribund "assets". Let's see what Buhari administration will do differently. 


Privately owned steel companies are pumping billions of naira into building new plants, as the need for housing, road and bridge construction expands in the country. This is despite the fact the Federal Government has not been able to revive the Ajaokuta Steel Company years after it was built in 1979.

Ajaokuta always caught up in something usually corruption, Court battle, or politics.

1 Like

Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by jieta: 9:25am On Jul 19, 2017
good development.

1 Like

Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by nextprince: 9:25am On Jul 19, 2017
Good one there.
Seeing some Table Tops up there already cursing themselves on this account. grin grin
Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by jomoh: 9:25am On Jul 19, 2017
I can t imagine a country without a buoyant Iron and steel industry.


I just can't imagine anything you want to use to build infrastructure that doesn't involve Iron and steel. Both the tools and the structure itself needs iron.


It is the single most important element to human existence.


It is so much important that Almighty Allah dedicated a whole Surah (chapter) to it in the Quran. Almost every important article of an Iron you can think of is embedded therein. From the Isotopes, the Atomic number to the origin.

Extract from the Surah.

"And We also sent down iron in which there lies great force and which has many uses for mankind… "(Qur'an, 57:25)


You can check out this site if you're in doubt

http://www.quranmiracles.com/2011/03/atomic-number-of-iron/

4 Likes

Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by gurujoe(m): 9:28am On Jul 19, 2017
mikeycharles:
And they said Buhari is not working, the man has been meeting up to expectations compared to our past leaders
Where is the Buhari? & where is he working?
This is private business & not government

5 Likes

Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by kunlexy1759(m): 9:28am On Jul 19, 2017
Nigeria is blessed...

1 Like

Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by rusher14: 9:28am On Jul 19, 2017
Blue3k:
The federal government are jokers. This shows power of private enterprise. Let them sell off all these moribund "assets". Let's see what Buhari administration will do differently. 

You are seeing what they are doing differently.

Private investors see reason to go into business.

2 Likes

Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by nobodysmanrob(m): 9:28am On Jul 19, 2017
Good development we still need Ajaokuta revived though. That investment is too much to just go to waste

1 Like

Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by opalu: 9:34am On Jul 19, 2017
Revive Ajaokta

1 Like

Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by Blue3k(m): 9:34am On Jul 19, 2017
rusher14:


You are seeing what they are doing differently.

Private investors see reason to go into business.

OK I'll continue. I know it's their plan to sell or concession off ASC. The private development I may attribute it to bans. I think it's just the massive demand that attracted them and fact Nigeria has natural component for industry.
Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by etech102(m): 9:43am On Jul 19, 2017
Rossikki:
NIGERIAN STEEL INDUSTTY ROARS BACK TO LIFE



Business Day
JULY 19TH, 2017


Privately owned steel companies are pumping billions of naira into building new plants, as the need for housing, road and bridge construction expands in the country. This is despite the fact the Federal Government has not been able to revive the Ajaokuta Steel Company years after it was built in 1979.

“We have invested $500 million in Nigeria. We believe that the steel sector is the backbone of any major economy in the world. Without steel, there cannot be any other industry in the real sector of any economy,” said Raj Gupta, chairman of African Industries Limited, which has 12 subsidiaries, including African Steel Mills, Ikorodu Steel Mills, African Foundries, and Abuja Steel Mills.

Similarly, Aarti Steel Nigeria Limited, one of the biggest steel mills in Nigeria, has completed a cold-rolled mill in Ota, Ogun State, with capacity to produce 120,000 tonnes of steel products per annum.

The steel maker spent about N300 billion to complete the mill in March this year. The mill is expected to serve the downstream steel makers in Nigeria, using cold-rolled steel products for the production of home appliances, roofing sheets, metal furniture and filing cabinets, tables and chairs, among others.

“The mill just started in March and it is now fully stabilised. It is producing already. It is a big investment and it will also be good for the Nigerian economy,” Aniket Singal, Aarti Group’s vice chairman, told BusinessDay in Lagos.

Singal said Aarti is already exporting steel to West African countries such as Togo and Mali and is expanding to Central Africa, Ivory Coast, Benin and other parts of the continent, in order to earn more foreign exchange for the Nigerian economy.

Nigeria, Africa’s biggest economy, spends about $3.3 billion on steel imports every year. Eighteen of the 30 steel manufacturers in Nigeria produce about 2.2 million tons a year, with scraps and billets imported mainly from China.

An average of steel products such as standard plates, hot-rolled coil, cold-rolled coil and rebar is $464.7 using Chinese prices, which means Nigeria imports roughly 7.1 million metric tonnes of steel annually.

Steel makers, made up of players in the basic metal, iron and steel and fabricated metal, invested N202.97 billion in the second half of 2016 as against N37.05 billion in the first half.

The sector pumped N1.69 trillion into the Nigerian economy from 2013 to 2015, said the Manufacturers Association of Nigeria (MAN).

Already, Standard Metallurgical Company Limited (SMC) is set to launch a billet mill to produce standard wire rods in Nigeria. The mill will likely create 1,000 jobs in the country.

“This will be the first factory to produce billet suitable for producing standard wire rods in Nigeria. All wire rods produced today in Nigeria are being made from imported billets, but in three months from now, we are going to start producing billets in Nigeria,” Mohammed Saade, managing director, SMC, told BusinessDay.

“Currently, we are producing 300,000 tonnes of wire rods per year. With phase two, we would produce 260,000 tons of billets in Nigeria. Nigeria today is a big market and we are committed to meeting local demands and the surplus can go to the ECOWAS market,” he said.

Qualitec Industries Limited is investing up to N100 billion in Ogun State, according to Oluyinka Kufile, CEO of the firm, who is also the chairman, Basic Metal, Iron and Steel Group of MAN.

A steel company, HongXing Steel Company Limited pledged to pump $100 million in plants and machinery in Nigeria last year.


https://www.businessdayonline.com/nigerias-steel-sector-comes-alive-despite-failed-ajaokuta/
please stop carrying fake rumors nothing is happening in Ajaokuta Steel company for now.
Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by Eazybay(m): 9:44am On Jul 19, 2017
rusher14:


You are seeing what they are doing differently.

Private investors see reason to go into business.


Sense is not common, the above named companies got approval and all in Buhari's admin abi? You are seeing a CLEAR devt 4rm d "clueless" regime and u're saying thrash. You even see d govt funding timeline.

I think political sycophants should be arrested and summarily executed.

3 Likes

Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by Nobody: 9:45am On Jul 19, 2017
Now, This is whatsup instead of bringing news of banning videos shot abroad.
Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by Mrnakeina(m): 9:45am On Jul 19, 2017
Zuma Steel is also working on their acquired Jos Steel Rolling mill.

FG should ignite policies and laws to help these guys in this our crippled economy
Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by olajizz01(m): 10:01am On Jul 19, 2017
etech102:
please stop carrying fake rumors nothing is happening in Ajaokuta Steel company for now.
Instead of u reading the contents,u are commenting hastenly.

7 Likes

Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by rusher14: 10:07am On Jul 19, 2017
Eazybay:



Sense is not common, the above named companies got approval and all in Buhari's admin abi? You are seeing a CLEAR devt 4rm d "clueless" regime and u're saying thrash. You even see d govt funding timeline.

I think political sycophants should be arrested and summarily executed.

They are flourishing under this government.

I see you are bloodthirsty.

2 Likes

Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by supereagle(m): 10:09am On Jul 19, 2017
Baba should stay away.
Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by Lilchilz(m): 10:10am On Jul 19, 2017
im proud to be a metallurqical enqineer

1 Like

Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by AJJ17(m): 10:12am On Jul 19, 2017
Good one
Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by kingyong2473(m): 10:12am On Jul 19, 2017
gurujoe:

Where is the Buhari? & where is he working?
This is private business & not government

Buhari can not work independently from his ministers he appointed and the vice president. Please let the government take credit for once, they are working round the clock for the country and its peoples. Kudos feds

1 Like

Re: Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta by kingyong2473(m): 10:13am On Jul 19, 2017
Mrnakeina:
Zuma Steel is also working on their acquired Jos Steel Rolling mill.

FG should ignite policies and laws to help these guys in this our crippled economy
True sir!

(1) (2) (Reply)

Can We Openly And Ethically Discuss Anything About Paypal In Nigeria Here? / This will be the best investment you ever venture into this 2019. / Fire Burns Shops In Ahoada, Rivers State, Destroys Goods Worth Millions (Photos)

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2021 Oluwaseun Osewa. All rights reserved. See How To Advertise. 146
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.