Steel firm commences work on 400,000MT plant in LFZ

HongXing-Steel-Company-LimitedPreparatory towards the construction of its steel pipe mill, Jiangsu Yulong Steel Pipe Company has begun preliminary work on its 400,000 million metric tonnes (MT) capacity plant at Lekki Free Zone.

According to the firm, the construction of the plant would make the plant the largest steel pipe mill as the steel pipe maker has completed bush clearing and sand filling of an 18-hectare expanse of land in preparation for the construction.

The firm is currently investing in the Nigerian economy in compliance with the Federal Government Local Content policy, which mandates foreign firms doing business with players in key sectors to establish local plants.

Managing Director of Lekki Free Zone, Ding Yonghua, said, We are happy this is happening here today”, adding that the firm’s investment in Lekki Free Zone would serve as a boost to Nigeria’s GDP, employment and a step in driving the country’s steel industry.

Yonghua said government was taking measures to ensure that investors in the zone had the foreign currency and other necessary infrastructure needed for their business.

“I hope that by next year, most of our issues will be resolved,” he assured investors, adding that he was anticipating more investors next year.

He said he was confident that the present administration would help the free trade zone to grow bigger, given its focus on diversifying the economy through the non-oil sectors.
Construction is expected to commence early 2016, as the fabrication of the steel structure for the factory house has been completed in China.

The firm’s production volume is estimated at about 400,000 MT per annum with yearly sales projection of about $480 million. The project upon commencement is expected to generate employment for over 1,000 people and will enhance modern technology transfer by training indigenous engineers in the steel fabrication industry.

No Comments yet