New Managers Release Production Time Table For Ajaokuta
From Alifa Daniel
Abuja
If the federal government keeps to its own side of the bargain, the Ajaokuta Steel Plant may roll out 1.3 million metric tonnes of Liquid Steel by September next year according to a time table released by the new Indian managers of the Steel Complex, ISPAT Group.
Details of the time-table, made available to The Guardian by Presidency sources at the weekend, shows that production capacity will be raised to 1. 5 million metric tonnes by September 2006.
But for these targets to be achieved, the ISPAT Group, which took over two weeks ago when the former managers, SOLGAS Energy Limited, left the steel plant, is seeking the support of government in the rehabilitation of the railways linkage with the Ajaokuta Steel Plant, dredging of ports and waterways; regular power supply from the National Electric Power Authority (NEPA), regular supply of Natural Gas from Nigerian Gas Company; revival and maintenance of township and staff welfare facilities; and support in putting in shape the handling facilities and Warri, Lagos and Port Harcourt Ports.
Two weeks ago, the federal government, acting on pressure from stakeholders in the steel industry, a damning report by the Senator Arthur Nzeribe Senate Committee on Power Steel and Metallurgy; and a letter from SOLGAS to withdraw from its Concession Agreement with the government, eased the American company out and immediately signed another 10 years Concession Agreement with the ISPAT Group from India.
Among others, the ISPAT Group, which boasts that it has interests in steel on several continents, has said in its time table that it will be able to start-up the Light Section Mill (LSM) and Wire Rod Mill before December.
The implication of this is that the much sought after Iron and Wire Rods used in the construction industry can be produced from Ajaokuta in January or February next year, at the latest.
Other plants ISPAT says can be started up within the next three months are the Power Plant, the Billet Mill and the Sinter Plant. The company promises to start heating up of the Coke ovens.
Other targets the company set for itself are:
- continuous training of Nigerian personnel
- development of matching procurement and marketing infrastructure for import, export and domestic sales.
- introduction of modern management techniques and tools like six Sigma, TPM, CRM and SCM, SAP.
