Nigeria’s KAM Steel Integrated has purchased the steel plant assets of Standard Metallurgical Company (SMC) for N60bn ($157.2mn). The steel subsidiary of KAM Holding plans to increase its iron and steel production capacity through the acquisition of the Sagamu, Ogun-based SMC.
The steelmaker plans to create around 10,000 jobs in Nigeria and has requested the federal government to speed up activities to support local steel manufacturers in the country.
Iyadunni Yusuf, chairman of KAM Holding said in a news release that the steel industry requires the government’s attention to identify steel and iron as national products, which will support foreign exchange earnings, despite declining global oil prices.
KAM’s integrated steel plant, which was completed at the end of 2019, is a 260,000mt per year melting shop and rolling mill based out of Jimba-Oja, Kwara State in Nigeria.
KAM’s news release also cited the country’s minister for mines and steel development, Olamilekan Adegbite, saying that the country’s economy, which entails a GDP of around $440bn, is among the fastest-growing in Africa. The minister added that Nigeria has more than 30 steel manufacturers but is only able to produce 2.2mn mt of steel per year by using scrap and billets mostly imported from China. Nigeria spends around $3.3bn in annual metal imports.