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A Chinese firm, Inner Galaxy Steel Company Limited is set to invest $300 million in a new steel plant in Ogun State to produce specialized steel products.
Minister of Steel Development, Prince Shuaibu Audu, made this disclosure in a statement released by the ministry’s Head of Information and Public Relations Unit, Salamatu Jibaniya on Thursday in Abuja.
Audu highlighted that this investment aligns with President Bola Tinubu’s economic diversification policy under the Renewed Hope Agenda, adding that this move reflects the company’s confidence in Tinubu’s leadership to enhance industrialization and strengthen the nation’s steel sector.
The minister assured the company of the Federal Government’s commitment to creating an enabling environment and providing fiscal incentives for sustainable operations.
He indicated that the ministry would review the company’s proposal and engage with relevant authorities to explore potential concessionary benefits within the existing operational framework.
The President of Inner Galaxy Steel Company Limited, Mr. Li Shuang, previously met with Minister of Steel Development, to seek support for the $300 million investment in a new steel plant in Nigeria.
Shuang explained that the plant will produce specialized steel products, such as plates, angles, beams, and stainless steel.
He emphasized that this investment would enhance Nigeria’s steel production capacity, reduce reliance on imported specialized steel, conserve foreign exchange, and create job opportunities.
According to Shuang, the project is anticipated to create 10,000 direct and indirect jobs, along with various economic multiplier effects.
He also highlighted that Inner Galaxy has been operating in Nigeria for over 20 years, with existing investments in steel production exceeding $1 billion.
Inner Galaxy Steel Company Limited is a subsidiary of Hongxing Steel Company Limited, which also owns four other subsidiaries involved in agriculture and oil and gas.
According to its website, Inner Galaxy operates a production plant in the Amuwo Odofin area of Lagos.
