Aarti Steel completes 120,000 tonnes capacity cold-rolled mill

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

The mill, which cost between $20 million and $30 million to complete, became operational in March this year and is expected to serve the downstream steel makers in Nigeria using cold-rolled steel products for further manufacture.

Apart from creating hundreds of jobs in the economy, Aarti says the mill will reduce dependence on importation and support the government’s vision of making Nigeria a steel-producing country.

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

Singal said the company’s capacity utilisation, which currently stands at 30 to 40 percent, will soon hit 70 to 80 percent as raw materials start getting back to the factory.

However, infrastructural challenges presently at the Apapa and Tin Can Island ports remain a big threat to manufacturers as several cargoes and imported raw materials are lying at the port, says the company.

“Naira devaluation had severe effect on production and pricing, because naira was getting devalued and important raw materials were getting expensive. So it was becoming uncompetitive in the market,” he said, while speaking on the impact of FX scarcity on the company in 2016.

He said Aarti is expanding its export expansion programme, as it plans to exploit opportunities in Central Africa, Ivory Coast, Benin and other parts of the continent in order to earn more foreign exchange for the Nigerian economy.

Also speaking, Keshav Sharma, executive director, Aarti Steel Nigeria, called for the sustenance of the total ban on galvanised corrugated roofing sheets to enable local manufacturers remain in business.

He assured the customers that challenges faced last year, like inconsistency of supply, would no longer continue as foreign exchange stabilises.

He said Aarti is making more investment in Nigeria and expanding its footprint in other parts of Africa, adding that the company is set to compete favourably in terms of pricing.

“One good thing about our products is that they have high quality. We want to continue to be the leader in the market,” he stated.

ODINAKA ANUDU