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Independentng.com homepage - Home of Independent Newspapers Nigeria LimitedAjaokuta rolls out first steel, 27 years on

Monday, October 18th, 2004 HOME | Previous Page

Ajaokuta rolls out first steel, 27 years on

By Bassey Udo

Snr Correspondent, Abuja

 

History would be made today, if all goes well, when the Ajaokuta Steel complex produces its first billet, an event that has waited 27 years.

The roll out from the multi-billion plant was originally scheduled for October 9, but had to be shelved because of the national protest organised by the Nigeria Labour Congress (NLC).

Managing Director and Chief Executive of the management contractor, ISPAT Group, Lalit Kumar Sehgal, confirmed last week in Abuja that prior to the suspension of the scheduled date, the coke oven at the plant had attained the heat level for ideal for production.

�Every of our plans for the take off of operations on the plant are in place. About 15,000 tonnes of billet have already been imported for the month�s operations. We hope to increase the volume to about 30,000 tonnes by November and to about 50,000 tonnes subsequently�, he said.

In line with the plant reactivation schedule, the cold rolling start-up began on September 28, ahead of the steel roll out proper, while the heating up of the coke oven production furnace has been on since September 29, to achieve over 1000 degrees centigrade heat level at which temperature is ideal for steel production.

Said Sehgal: �The billet mill is up and running. So, also is the sinter plant. We hope to complete the steel making capacity of the plant on schedule. Today, production furnace of the plant has achieved over 1,100 degrees centigrade of temperature and is still rising. Nothing is going to stop our plan to roll out production. We are on course to make the plant commence full operations in 2005�.

Effort by the government in the past to get the plant to function failed, resulting in the loss of billions of naira over the years in maintenance.

A management contract signed on March 30, 2003 with Solgas Energy Limited for the rehabilitation, completion, commissioning and operation of the plant, which was 98 per cent completed at the time it was shut, was terminated last August following the company�s failure to deliver on the mandate.

A new 10-year agreement was later signed with Global Infrastructure, an Indian iron and steel infrastructure company, and member of the ISPAT Group, which pledged to roll out first steel from the plant by the first week of October, with full operations within six months of its take over of the plant.

 

cal expertise and experience to execute the contract to meet the expectations of the government and the people of Nigeria.

About 300,000 tonnes of steel is to be produced from the plant in the initial roll out, which is expected to increase marginally to about 400,000 tonnes, in a gradual build up to the installed capacity.

 

 


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