SCC commissions 280,000 tonnes steel pipe mill
The Setraco Construction Company (SCC) has commissioned its 280,000 tons ultra-modern steel pipe manufacturing mill in Ushafa, Bwari Area Council of the Federal Capital Territory FCT.
Commissioning the factory yesterday, President Muhammadu Buhari expressed pleasure at the company’s efforts at diversifying the economy of the country through manufacturing.
Represented at the ceremony by the Secretary to the Government of the Federation, Engr. David Lawal Babachir, the president said it was a welcome development for the company to meet 10 per cent of Nigeria’s demand for steel pipe.
“I have always believed that it is only companies which have total faith in the capacity in an economy to grow and excel in mutual prosperity that would embark on major investments like iron, steel, pipes and steel products, even in a situation of inadequate steel raw material and energy supply,” he said.
The president added that SCC venturing into steel pipes manufacturing shows its readiness to key into Nigeria’s ambition of developing its local content capacity to promote rapid industrial growth.
“In the face of our increasing demand for steel pipes, which today stands at 1.2 million tonnes annually, the SCC pipe mill is expected to satisfy 10 per cent of the nation’s oil and gas pipe demand, which is about 100,000 tonnes annually.
“This development is a great milestone in our collective effort to promote and increase local content in the oil and gas sector and to fast-track efforts at transferring technology and technical capacity to Nigerian engineers and artisans, as well as conserved the needed foreign exchange. I must commend SCC in this regards, because having started operations with 50 expatriates a few years ago, today you have about 250 Nigerians employed in the steel pipe factory with only four expatriates,” he said.
In his welcome address, Dr Patrick Dele Cole, on behalf of the SCC Nigeria board of directors, said the purpose of the factory was in line with the federal government of Nigeria’s effort to increase local content of manufactured products.
He said it was in view of the above that SCC invested millions of dollars to establish the steel pipe manufacturing factory.
Dr Cole said the factory has since been upgraded and retooled to produce diverse sizes of steel pipe for the oil and gas industry in strict adherence to the quality requirement of the American Petroleum Industry (API).
According to him, “the SCC has taken a decisive action to increase the initial capacity of the steel pipe factory from 80,000 per annum to 280,000 tons per annum through the addition of a brand new modern state-of-the-art mill that will ensure the capacity and capability that will produce high quality steel pipe for the oil and gas industry in Nigeria.”