Firms seal $50m project’s deal at free trade zone
The Lekki Free Zone Development Company has signed a $50 million investment agreement with the foremost Steel Pipe Manufacturer in China- Jiangsu-Yulong Steel Pipe Company Limited to set up the largest Steel Pipe Mill in the Lekki Free Zone.
The steel pipe mill, scheduled for completion by middle of 2016, has been billed to be the largest heavy industry in Nigeria and leading steel pipe manufacturer, when completed.
Already, the project’s production capacity has been estimated at about 400,000 tonnes yearly, with a yearly sales projection of about $480 million.
Also, it would generate employment for over 1,000 people on commencement of operations, while enhancing modern technology transfer through training indigenous engineers in the steel fabrication business.
Jiangsu Yulong Steel Pipe Co. Limited is the largest and one of the fastest growing Steel Pipe Manufacturers in China with 22 Sets of Steel processing and Pipe Manufacturing units.
The company, after 35 years in the industry operations, employs around 3000 people and has a yearly production capacity exceeding 2.1 million tonnes of steel pipes and tubes and 5.5 million square meters of coating.
It has two subsidiaries in Yili, Xingjiang Province and in Deyang, Sichuan Province, connecting the Eastern and Western part of China.
Jiangsu-Yulong was listed on the Shanghai Stock Exchange in 2011 and has now developed into a welding pipe production base, which mainly produces wide range of pipe specifications for the oil and gas companies.