President Inaugurates SCC’s $150m Steel Pipe Mill Factory
Senator Iroegbu and Adedayo Akinwale in Abuja
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 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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