GOODLUCK EBELE JONATHAN, GCFR,

Size: px

Start display at page:

Download "GOODLUCK EBELE JONATHAN, GCFR,"

Donna Stephens
5 years ago
Views:

1 MEDIA BRIEFING ON THE ACTIVITIES OF AJAOKUTA STEEL COMPANY LIMITED BY THE SOLE ADMINISTRATOR, ENGR. ISAH, JOSEPH ONOBERE, MNMS, MNSE, MNIM ON FRIDAY, 11 TH JANUARY 2013 AT AJAOKUTA. Protocols, I am highly delighted to have the honour and privilege to welcome members of the distinguished Media World on behalf of the management and staff of Ajaokuta Steel Company Limited. The essence of this briefing, which is coming some two months after the approval of my appointment by the President, Commander-in-Chief of the Federal Republic of Nigeria, Dr. GOODLUCK EBELE JONATHAN, GCFR, is to highlight and put across our plans and programmes in the public domain. Since my appointment, I have held series of consultations with the workforce and sensitized them to brace up for the task of starting up operational activities in some key selected areas of the Plant that can be put into operation. STATUS OF THE PLANT Gentlemen of the Press, before I address you on our plans, let me put on record that the Ajaokuta Steel Plant is NOT OBSOLETE as put across to the public by some people who are largely ignorant of steel technology. Let me quote from the recent technical audit conducted by the Ukrainians who inspected the plant;...the situation of the Steel Plant s equipment and facilities are satisfactory. Mechanically, the Steel Plant equipment and facilities are generally in good condition.

2 I made reference to above because we need to educate the good people of Nigeria that the Blast Furnace Technology of Steel Making adopted in Ajaokuta is still the best method through which large volumes of Steel are produced in the World today. In year 2011, the World Steel Statistical Year Book, put total crude Steel production in 2010 at 1.4 billion tonnes. Out of this, 1.04 billion tonnes is through the Blast Furnace Technology, giving an average of 74% of total steel produced in the world. This is the Technology adopted in Ajaokuta Steel Plant. The question then will be: can a technology that produces 74% of world total steel production be obsolete? 1. It is also important to note here that, all developed nations got to where they are today because they have a virile Steel Sector; even when some of them like Japan have no raw materials for steel production. Nigeria that has virtually all the needed raw materials for steel production is still in doldrums. Ladies and Gentlemen, great philosophical minds have said that When we stop thinking we often miss our opportunities. Ajaokuta is a great opportunity for the Nigerian Nation to get industrialized and this management is determined to ensure that it does not miss the great opportunities this project has for the nation. It is gratifying to note that the Ajaokuta Steel Plant is 98% technically ready in terms of equipment erection. The Federal Government is doing everything possible to ensure the completion and commissioning of the Plant as an integrated Steel Plant, once the arbitration issue is resolved.

3 MERITS OF A COMPLETED AND COMMISIONED AJAOKUTA STEEL PLANT For a nation like Nigeria, the merits of a completed and Commissioned Steel Plant like Ajaokuta Steel are numerous and chief amongst them are: Employment Generation for the citizenry; With the completion and commissioning of the steel plant to produce 1.3million MT per annum of liquid steel, Ajaokuta Steel plant would become a net provider of employment: Direct employment-15,000; Indirect employment - 500,000 of Unskilled, Semi-Skilled and Skilled Workers and various professionals in the downstream and upstream industries and services. Facilitating Technological Growth; Acquisition of Technical Expertise; Providing input for Infrastructural Development Adding value to our natural minerals that abound and untapped all over the country. Without developing our own steel industry, we will end up export our natural minerals at very cheap rates, and import the finished products at exorbitant prices as it is with oil today. Foreign exchange earner and saver; Great opportunities for varied capacity building;

4 Positive march towards the realization of vision ; Vastly increased Economic Opportunities for host communities; Poverty reduction and Job creation; Wealth generating activities; Economic Diversification. (World economists have predicted that oil boom will end by 2016) It is also said that a man that dares to waste time has not discovered the value of life. In tandem with this philosophy, this Management took the first bold step to put its house in order by ensuring a stable industrial environment. It will be recalled that for about five (5) years the work force especially the Senior Staff Association was embroiled in internal strife which made Management/Workers harmony almost a mirage. Gentlemen of the Press, because of our belief that a healthy and harmonious work force is a prerequisite for a peaceful industrial environment and productivity, the new Management waded into the matter and with the support of the Honourable Minister, Mines and Steel Development, Arc. Musa Muhammed Sada, fnia, the Permanent Secretary of the Ministry, Mr. Linus Awute, mni, I am pleased to announce that we have resolved this matter as a family and agreed to put the matter behind us for the good of the project. OUR PLANS While resolving the disquiet amongst the workforce, we articulated our plans and decided to put the completed Units of the Plant into use. The plan to start up these completed plants is borne out of the determined desire of the new Management to:

5 Engage the workforce in more productive activities. Preserve the Plant equipment, as operating them is the best engineering and technical way of preservation. Generate some revenue, thereby reducing dependency on Government. Add value to the Steel Plant as an asset, giving it high standing in any possible self sustaining Public Private Partnership that may be considered after the completion and commissioning of the Steel Plant; and Ensuring that the Transformation Agenda of the Federal Government and its vision blue print on Steel is realized. ROLLING MILLS The Steel Plant has four (4) Rolling Mills, namely: Light Section Mill (LSM), Wire Rod Mill (WRM), Billet Mill (BM) and Medium Section and Structural Mill (MSSM). After a careful study of the steel market in Nigeria, the management felt that starting activities in the completed units of the Ajaokuta Steel Plant will be most rewarding. It therefore went into discussions with some willing investors. I am pleased to inform you that ASCL and the Management of Reprom Company Nigeria Limited reached some understanding on mutual commercial collaboration on the operation of the Light Section Mill. The collaboration will see Reprom providing 10,000 tonnes of billets per month for conversion at the Light

6 Section Mill. Ajaokuta Steel Company Limited is expected to generate some revenue from this arrangement in form of conversion fees. ENGINERING WORKSHOPS Our Engineering Workshops consist of Machine and Tools Shop, Forge and Fabrication Shop, Foundry and Pattern Making Shop, Power Equipment Repair Shop and Rubberizing Shop. We have in the past used these facilities to provide engineering maintenance services for organizations like the Cement Industries, Refineries and Petrochemical Companies to mention a few. Arising from these experiences, we have articulated plans to pro-actively market the facilities and capacities that abound here. We have designed market strategies that will bring in jobs to this facility; chief amongst is the adoption of Jobbing Agents approach. The Management of the Workshops is also being reorganized for effectiveness. It would be made semiautonomous for efficiency. METALLURGICAL TRAINING CENTER The Metallurgical Training Center (MTC) is equipped with training facilities to train Craftsmen and Technicians for ASCL and other external agencies. We have received several Training Proposals from several organizations who have indicated their interest in the Center, chief among them are the National Mathematical Center, Abuja, NDDC; Amnesty Programme etc.

7 The Memorandum of Understanding with some of them will soon be signed and training activities will commence as soon as that is done. In the meantime, we are doing everything possible to put the Center in good shape, in preparation for the commencement of training activities. We are ensuring that its environment is cleaned up and made comfortable and habitable. OTHER EFFORTS We have also stepped up contacts to attract would be investment partners and the result has been very encouraging. We have opened up discussions with CALTECH LIMITED from British Virgin Islands. Their Senior Consultant has visited the Plant and we are optimistic that this relationship will come to fruition. We have received proposals from ZSM/MZV on our Wire Rod Mill; Oxygen Plant; Power Plant etc and discussions are ongoing with them. Discussions are also ongoing with Associated Global Matrix etc, all with a view to partner with them and generate commercial activities in other Completed Units of the Plant. Ajaokuta Steel Plant is the only hope for the nation s industrial and economic emancipation. We must stand our ground as a nation and should not succumb to the activities of international trade politics. There is no country in the world that has capacity to produce steel that will not capitalize on it. The industrialised Nations will want a permanent hold on local steel markets as they have always tried to turn other Countries like Nigeria into a dumping ground for their own products at the detriment of the growth and technological development of the Country.

8 Let me end this address with a response given to the IMF/World Bank by the Egyptian Government when they were asked to privatize their Iron and Steel Company (EISCO). It said inter alia that, Profitability is not only measured in terms of the accountants balance sheet. Multiplier effects, technological, security, social and socio-economic potentials of an enterprise are greater indices in measuring profitability. The challenge to defend our economy is in our hands. Ladies and gentlemen, it is our hope and prayers that you in the Media will support us in this noble cause. We shall avail ourselves to you from time on our progress. Thank you and welcome to Ajaokuta Steel Plant. Engr. Isah, Joseph Onobere, MNSE, MNIM SOLE ADMINISTRATOR 11 TH JANUARY 2013.

KEYNOTE ADDRESS BY DR DALHATU SARKI TAFIDA, OFR, NIGERIA HIGH COMMISSIONER TO THE UNITED KINGDOM

KEYNOTE ADDRESS BY DR DALHATU SARKI TAFIDA, OFR, NIGERIA HIGH COMMISSIONER TO THE UNITED KINGDOM AT THE WORKSHOP ON NIGERIA UK SUPPLY CHAIN ENGAGEMENT BERR CONFERENCE CENTRE, LONDON, THURSDAY, 30 TH APRIL