The government expects to receive one million tons of steel from the $ 1.5 billion steel plant.

Posted by on Oct 20, 2020, Under: News

The government expects to receive one million tons of steel from the $ 1.5 billion steel plant.

The federal government said the construction of a $ 1.5 billion steel plant in Kaduna state, once completed, would bring the auto industry to Nigeria.

This was announced by Minister of Finance, Budget and National Planning Zainab Ahmed during an inspection trip to African Natural Resources and Mines, part of the African Industries Group, in Kaduna.

The minister, who spoke on Saturday during an inspection of the plant, said the plant will produce one million tons of steel a year and help end imports of goods into Nigeria.

He said: “We are deliberately engaging various industries to enter Nigeria. This is due to the fact that one of the main obstacles to industrialization was the shortage of high quality steel.

“So this project now gives us confidence that we can get the world’s auto industry to come to Nigeria and make cars in Nigeria for Nigerians as well as the region.”

The finance minister described the African natural resources and mining group as an important partner for Nigeria’s economic development and diversification.

According to her, “there is no country in the world that will be industrialized without a stable steel industry. Your cooperation with us as a government means that we are largely on the sidelines to fulfill the ambition to industrialize Nigeria. ”

African Industrial Group CEO Alok Gupta said the company will mine iron ore to produce direct reduced iron, which will enable the company to produce higher quality steel more efficiently.
He said: “This long-term investment will significantly increase domestic steel production. We are capable of producing over a million metric tons per year.

“We are proud to be part of the coming steel revolution in Nigeria. We have invested over $ 1.5 billion and hope that the anticipated steel revolution will have a multiplier effect on the Nigerian economy. ”

Gupta also said the steel company has supported the federal government in the fight against COVID-19 by donating $ 1.35 billion to help contain the spread of the virus.

Source: – Brandspurng