WEMPCO to set up steel plant in Nigeria

Friday, Nov 14, 2008

Allafrica.com reported that Western Metal Products Company Limited has made a fresh investment of USD 750 million in a new steel plant at Ibafon in Nigeria, saying it is to boost local steel production in the country. Work in the factory which has a capacity to produce 750,000 tonnes of steel products, started three years ago and it is expected to be completed by the third quarter of 2009.

Mr Robert Tung of director of WEMPCO said that ""We are investing in the project in the lager interest of the economy. We have 100% confidence in the economy, in the people and we believe if people see things the way we do, the better for the nation. Nigeria cannot continue to import products that their raw materials can be sourced locally. That is our aim and focus for the flat steel sheet project and now integrated into our ceramic tile project on the same site. Some of these raw materials and construction are now sourced and done locally on site.""

Mr Alhaji Tokunbo Alli chairman of WEMPCO said that it had also commenced moves to reduce the quantity of both hot and cold rolled steel coils being imported into the country by one quarter. He added that the decision by management to cut down on the volume of the cold and hot rolled steel coils was to allay the fears of manufacturers in the sector who felt threatened by the incentive package granted to the company by the federal government.

He said that WEMPCO Group is a long standing manufacturer established over 40 years ago in Nigeria with over 12,000 workforce that cuts across its 11 subsidiaries. He added that ""As a result of our confidence in the Nigerian economy and our vision for the future development of Nigeria in the steel sector, we decided as usual to further invest in flat rolled steel plant.""

Mr Alli said that ""We submitted our proposal to the Federal Government and the investment plan was approved along with some incentive package to further cushion the economic effects and encourage our group and potential investors. Unfortunately, some of our competitors have protested against the investment incentive, claiming that it would adversely affect their own business. The protest is on the following areas: pipe manufactures, importation of 250,000 tonnes each of hot & cold rolled steel coils of iron or non alloy steel, cable manufacturer and paints manufactures.'

He further added that ""We, however, want to re emphasize that these materials are for the project and not for sale as we are no traders.

Source: Steelguru