The nation’s steel sector will soon boost up as Hongxing Steel Nigeria Limited, a Chinese firm expands to Aba, Abia State with a $120 million investment in iron/rod factory.
The plant which is the biggest in West Africa will be producing about one million tons of iron/rod annually and will be exporting to neigbouring Economic Community of West African States (ECOWAS).
Meanwhile, some government policies including the automotive policy and the restriction of 41 items from accessing foreign exchange, offer opportunity for the company to increase its production capacity.
Andy Lu, managing director, said one of the major contributions of the company is turning waste to wealth, adding that the quality of iron/rods produced in the company have Standard Organisation of Nigeria (SON) certification.
The company which commenced operation in 2009 has employed over 700 Nigerians and several other indirect employments in haulage and scrap business among others.
Lu explained that the company has actively helped Nigerian companies depress cost of iron/rod from N180,000 to N100,000 per tons.
He noted that the company has created a cordial relationship with the staff in such a way that it serves meals to factory workers, distribute bread and milk to workers regularly, adding that the salary of workers is most competitive in the market.
Contrary to what some manufacturers think about government policies, he said the restriction of 41 items has been very beneficial to local industry.
“Nigeria is most important country in Africa. We see Africa as the next future. The country is developing sharply. Nigeria has a lot of young people who are eager to work and learn”, he said.
He acknowledges that there are a lot of challenges including power, transportation, poor road infrastructure among others.
The managing director therefore, called on the Federal Government to provide preferential tariff which will help reduce cost of production.
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