Home Analysis Six nations to participate in Delta Steel Industries

Six nations to participate in Delta Steel Industries

by Business News Report

Six foreign countries are to participate in Nigeria’s multi-million naira Delta Steel ancillary industries.
Already, China and Norway have made formal requests for equity participation for in the 100 industries which need an initial take capital of N25 million.
Delta Steel sources at Aladja told The Republic that a good number of enquiries have been pouring in from other foreign countries.
According to the source, some Nigeria businessmen have also shown considerable interest in the ancillary industry.
A source close to the Delta Steel Plant Ancillary Industries Development, Project Engineering and Design Department, told The Republic that 100 hectres of land have already been acquired near the Delta Steel plant for the proposed ancillary industry.

The source said that the need to develop make components the for the plant arose from the plant like any of its kind anywhere make great use of spare parts.
At present, the plant uses about 700,000 different spare parts annually. These spare parts are made from abroad and imported. Apart from the present hard times which makes importation difficult the problem of storage and material management further compound the situation. The way out therefore is for the plant to encourage the development of ancillary industries.
Ancillary industries being proposed include foundries the most important that would grow around the steel industry. The products of the foundry are also required in virtually all other engineering industries.
According to our source, others are the mechanical components (shops) industry which would forge, press machine and provide general engineering workshop.
Also to be provided under the mechanical components (shop) industry are pipes such as lancing pipes, ERW pipes, seamless pipes. These industries, mechanical components shops, will obtain their inputs from foundries and steel plants.
Our sources also said that fabrication industries which will buy materials from the steel plants and use them in the production of bicycle carries, fencing patterns, doors and windows frames etc, are in proposed estate

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