The effort of the
federal government towards making gas accessible and affordable to Nigerians
through its National gas master plan received a boost on Thursday with the
inauguration of a new ultra modern $150 million steel pipe mill by President
Muhammadu Buhari.
Buhari who was
represented by the Secretary to the Government of the Federation (SGF),
Babachir Lawal, said the company
established by SCC was a great milestone in a collective effort to
promote and increase local content in the oil and gas sector.
He stated that it would
also fast track effort at transferring
technology and technical capacity to Nigerian engineers and artisans as well as
conserve the much needed foreign exchange.
He said: “Have always
believed that it is only companies that have total faith in the capacity of an
economy to grow and excel in mutual prosperity that will embark on such major
investment like iron, pipes, steel, even in a situation of inadequate raw
materials and energy supply as it is in this country.
“SCC, a company that
has operated in Nigeria since 1976 has satisfactorily demonstrated it faith and
believe in the Nigeria project. From its humble beginning as a medium line
engineering and construction company,
mainly engaged in infrastructure and development project, hydro power dam,
water, road construction....it has metamorphose into a frontline manufacturing
and a construction giant.”
The president stressed
that SCC venturing into steel pipe manufacturing speaks volume about the
company’s readiness to key into Nigeria’s
ambition of developing local content capacity to promote Nigeria rapid
industrial growth.
“In the face of our
increasing demand for steel pipes which today stands at 1.2 million tons
annually, the SCC pipes mill is expected to provide close to 10% of the
nation’s oil and gas pipe demands which is about 100,000 tons annually.
“I will therefore
commend SCC in this regard because having started operations two years ago with
only fifty expertise staff, today you have about 250 Nigerians employ in the
pipe factory with only four expatriates
“I particularly note
your concern about the shortage of raw
materials in Nigeria, obviously the comatose Ajaokuta Steel Company cannot
satisfy your needs, the fact that you have to import rods , steel and
other accessories will put pressure on
your capacity,” the president added.
“Therefore, the
government will continue to promote and protect such investments and all other
effort aim at achieving industrial growth and social economic development by
creating enabling environment and regularly putting in place policy measures
which will safeguard local investment by banning imported products that are at
times below quality,” Buhari noted.
The president remarked
that he was aware that some major oil
companies in Nigeria have placed order to about 100km pipelines to SCC, which
he said would sustain the employment of Nigerians and create more opportunities
for training
Earlier, SCC Director,
Mr. Patrick Cole, said the company keyed into the policy of the federal
government to increase local content by investing millions of US dollars to
establish this pioneering pipe manufacturing factory for the manufacture of
three-metre diameter double wielded helical water pipes across 75km for the
Gurara water conveyance project.
He emphasised that the
factory has since been upgraded and retooled to produce diverse sizes of steel
pipes for the oil and gas industry in strict adherence to the quality requirements of the American
Petroleum Institute (API) and the International Standards Organisation (ISO
9001).
Cole revealed that as
of date, the company has successfully manufacture steel pipes of APC 5L
specifications for Exxon Mobil, Chevron and AGIP.
“Not only have we
retooled and upgraded the factory. SCC has taken a decisive action to increase
the initial installed capacity of the steel pipe factory front 80,000 tons per
annum to 280,00 tons. Per annum through the addiction of a brand new modern
state of the art mill which will further ensure the capacity and capability to
produce high quality steel pipes for the oil and gas industry,” he added.
Cole explained that the
decision of SCC to continuously invest in Nigeria was a tribute of its strong
belief in the vision of federal government for local content development,
stressing that the company currently employs 400 Nigerians directly and
thousands more down the line.
Meanwhile, the Managing
Director, SCC, Mr. Yuval Levy said
despite the steel company costing over $150 million, that SCC would also invest
additional millions of dollars in the establishment of a pipe coating plant
within the same factory premises, which would be completed by 2016.
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