Chinese company announces interest after Dangote suspends investment in steel

• Inner Galaxy Steel Company Limited, a Chinese company, plans to build a new steel complex with an investment of US$300 million
• The Minister of Steel Development said that the investment is in line with the economic diversification policy of President Bola Tinubu’s Renewed Hope Agenda.
• The minister assured the company that sustainable operations will have support from the federal government

Legit.ng journalist Zainab Iwayemi has over 3 years of experience covering economics, technology and capital markets.

A Chinese company called Inner Galaxy Steel Company Limited intends to invest US$300 million to build a new steelmaking facility in Ogun State that will manufacture specialty steel products.

Prince Shuaibu Audu, Minister of Steel Development, made this disclosure in a statement issued on Thursday in Abuja by Salamatu Jibaniya, Head of the Information and Public Relations Unit of the Ministry.

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According to Audu, the investment is in line with President Bola Tinubu’s Renewed Hope Agenda economic diversification program, demonstrating the company’s faith in Tinubu’s ability to lead industrialization and improve the country’s prospects through the steel industry.

The Guardian reported that the minister gave the company the guarantee that the Federal Government would support sustainable operations, offering financial incentives and a favorable environment.

He emphasized that the objective of this program is to attract and facilitate foreign direct investment, adding that the ministry would examine the company’s application and consult the relevant authorities to investigate concessional benefits under the current operational framework.

In order to gain the ministry’s support for a US$300 million investment to build a new steel factory in Nigeria, Li Shuang, chairman of Inner Galaxy Steel Company Limited, had previously visited Prince Shuaibu Audu, minister of country development. steel.

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According to Shuang, the plant would focus on manufacturing special steel products such as stainless steel, plates, angles and beams. He emphasized that the investment would increase Nigeria’s capacity to produce steel, reduce dependence on imported specialty steels, preserve foreign exchange and create jobs.

In addition to other economic multiplier effects, Shuang estimates that the project will generate 10 thousand direct and indirect jobs. The company has been operating in Nigeria for more than 20 years, he added, and currently has more than a billion dollars invested in steel production.

Indian steel company to leave Nigeria amid economic difficulties

Legitimate.ng reported that Indian steel company Aarti is exiting Nigeria’s manufacturing sector, joining a long list of companies that have left the country due to economic difficulties.

BusinessDay reported that large parties have already made tentative bids ranging from $50 million to $100 million for Ota, a steel manufacturer based in Ogun State, which has already been put up for sale.

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After Microsoft Nigeria, Total Energies Nigeria, PZ Cussons Nigeria PLC, Kimberly-Clark Nigeria and Diageo PLC outside Africa’s most populous country, this will be the sixth giant company to leave Nigeria in the first half of 2024.

Source: Legit.ng