Inner Galaxy Steel Company Limited to Invest $300 Million in New Steel Plant in Ogun State
Ogun State, Nigeria – Inner Galaxy Steel Company Limited, a Chinese-based firm, has announced plans to invest $300 million in the establishment of a new steel manufacturing facility in Ogun State, focused on producing specialized steel products. This development was confirmed by Prince Shuaibu Audu, Nigeria’s Minister of Steel Development, in a statement issued by Salamatu Jibaniya, the ministry’s Head of Information and Public Relations Unit, on Thursday in Abuja.
Minister Audu emphasized that this significant investment is in line with President Bola Tinubu’s economic diversification strategy, detailed in the Renewed Hope Agenda, and underscores the company’s faith in Tinubu’s ability to advance industrial growth and enhance the nation’s steel sector potential.
During a prior meeting with Minister Audu, Mr. Li Shuang, the President of Inner Galaxy Steel Company Limited, sought the ministry’s backing for the $300 million project. Shuang outlined that the proposed plant would specialize in manufacturing a range of steel products, including plates, angles, beams, and stainless steel. He asserted that the new facility would augment Nigeria’s steel production capabilities, lessen reliance on imported specialized steel, conserve foreign currency, and create substantial job opportunities.
According to Shuang, the initiative is projected to generate approximately 10,000 direct and indirect jobs, along with various economic benefits that will ripple through the community. He mentioned that Inner Galaxy has been operational in Nigeria for over two decades, with its total investments in the steel sector exceeding $1 billion.
Key Insights:
Inner Galaxy Steel Company Limited operates as a subsidiary of Hongxing Steel Company Limited, which manages four additional subsidiaries active in agriculture and oil and gas. The firm operates a production facility located in the Amuwo Odofin area of Lagos.
Reports from the National Steel Raw Materials Exploration Agency (NSRMEA) indicate that Nigeria’s annual steel consumption averages around 10 million metric tonnes, with 70% of this demand satisfied through imports. The Minister of Steel Development has previously highlighted that the country allocates roughly $4 billion yearly towards steel imports, despite having around 74 steel plants and fabricators in operation across the nation.
Earlier this year, Alhaji Aliko Dangote, Chairman of Dangote Industries Limited, also expressed intentions to enter the steel production market to address the nation’s steel needs, but later paused these plans due to conflicts with government authorities regarding his refinery.
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