First phase of Strong Structural Steel’s investment to gulp $36m
The first phase of Strong Structural Steel’s investment is expected to bring foreign direct investment of $36 million to Nigeria, a development that will help to shore up the dwindling naira and the foreign exchange.
Strong Structural Steel is a United States company specialising in the fabrication and erection of Class A structural steel, miscellaneous steel and pre engineered metal buildings. The company is making plans to establish a local steel plant in Africa’s largest economy and expects the project to boost Nigeria’s built industry while raising the country’s construction standards.
The firm targets to produce $150 million of sales with a single shift and conservatively expects a 12 percent net profit.
The operation will set up a state-of-the-art technology and proprietary building systems and will be the foundation for an innovative construction/public works project that will result in meeting the growing construction needs of Nigeria.
The company is targeting to develop a market of quality construction, building materials, and public works project, thus eliminating the need to import steel products and specialised labour into the country.
The project, which is facilitated and developed by Samano S.A. DE C.V Nigeria Limited, is equipped to immediately hire 300 local Nigerian employees directly
Jose Salazar Tinajero, president and CEO of Samano S.A. DE C.V. Nigeria Limited, said the company intends to establish private-public ventures that will benefit the government’s vision of economic growth and the communities’ life quality.
“The company seeks to establish and ramp up the operations as soon as possible. It plans to dominate the technical aspect of operation with the Strong Structural Steel employee training program in the short term of 18 Months,” Tinajero said, in a statement.
Tinajero added that the investment is projected as a joint ventures/partnership/
“The company has already spoken to several participants interested (e.g. emerging market fund, Private Equity Group, Financial institution, etc) in funding the project and bringing it to fruition. We are currently seeking federal or state government participating in the form of land, permits, contracts, and equity participation of no less than 15 percent,” he said, adding that this will allow the government to participate in profit-sharing and job creation.
Lamar Strong, owner and founder of Strong Structural Steel (USA) added, “During the construction and training time, Strong Structural Steel US plant will produce any project sold in Nigeria under a profit sharing agreement similar to that of the partnership agreement. The company is financially strong and its condition is easily verifiable through bank and tax return record as well as financial statements.”
A most notable product of the firm is the variety of gauged steel studs that carry multiple applications, from residential homes to commercial building. The company’s steel stud fabricating technology is expected to allow quick production of custom-frame work that will allow Nigeria to meet its needs for an aggressive home building campaign and will be a tool to help close the housing deficient gap.