Russian Firm Indicates Interest in Ajaokuta Steel

Steel sector
  • Russian Firm Indicates Interest in Ajaokuta Steel

A Russian company, MetProm Group, has submitted a fresh offer to the Federal Government to rehabilitate Ajaokuta Steel Complex.

According to a report by Punchng, the company is also looking to manage the project after completion.

The offer was submitted on September 10, 2019, during a meeting between Russian delegates and Nigerian Ministry of Mines and Steel Development.

Valery Shaposhnikov, Deputy Head of Mission, Trade and Economic Affairs, Russia, who was also part of the delegation, confirmed MetProm Group’s offer in an interview.

It should be recalled that a Russian company, TyazhPromExport (TPE) built the Ajaokuta Steel Complex, however, the project was abandoned after negotiation broke down between TPE and Federal Government.

Speaking on the TPE issue, Shaposhnikov said the issue between the Federal Government and TPE is now in the past as another Russian company in the name of MetProm Group had made a new offer to complete the abandoned project.

He said, “I honestly do not see much use in muddling about with conjectures of the past. What matters now is an offer by a reliable Russian company, MetProm Group, to put the mill into operation.

“Many of MetProm experts had worked with TPE at Ajaokuta complex in the past. The company (MetProm Group) comes with a profound expertise in modern heavy industry and in the Ajaokuta case in particular.”

On MetProm Group website, the company described itself as “recognised leaders in designing projects in metallurgy, supply of equipment, execution of construction and erection works and erection of equipment up to reaching the design capacity.”

Shaposhnikov further stated that the type of agreement that would be reached between the government and MetProm Group would determine the order of work.

He said, “It will depend on the agreement. The Nigerian side will define the strategy and the order of work.”

Also, in the meeting were the Minister of Mines and Steel Development, Olamilekan Adegbite, and the Minister of State, Uche Ogah.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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