Chinese, Nigerian firms to cooperate on reviving steel plant

A consortium of Chinese and Nigerian firms was to revamp the Ajaokuta Steel Plant in central Nigeria with projected annual production of 2 million tons of steel within the first two years of takeover.

The Chairman of Henan Taihang Quanli Heavy Industry Group, Huang Quanli, revealed this in Abuja on Monday at the public presentation of the consortium.

He said a consortium, made up of Total Steel Ltd of Nigeria and Henan Taihang Quanli Heavy Industry Group, was formed to take over and deliver quick results in steel production in the long suspended plant.

"We have visited the Ajaokuta Plant and we are impressed with the condition of equipment, which has been well preserved over the 30 years of non-productivity," said Huang, adding Ajaokuta Steel Plant has met all the required standards of a steel plant but "regrettably the plant is wasting due to non-completion."

"If given the chance to invest in the plant, we promise that within a few years, Nigeria will become self-reliant and export all sorts of steel products to neighboring countries," he said.

Huang said that revamping the company would enhance Nigeria's new automotive and industrialization policies.

Also, the Chairman of Total Steel Nigeria, Hussaini Abdulrahman, said the company had vast experience in steel manufacturing spanning 30 years.

He said it currently owned a steel plant and a substantial upstream coal and iron ore resources all within a 50 km radius of Ajaokuta Steel Plant.

Abdulrahman said the project would not only reduce importation of steel but generate employment and skills acquisition in the country through the exploration and mining of coal, iron ore and limestone. Endi