Dangote Injects N10 Billion Into Osogbo Steel Mills (renamed as Dangote Integrated Steel Rolling Mill)
THE President of Dangote Group, Alhaji Aliko Dangote, has acquired and injected N10 billion into Osogbo Integrated Steel Rolling Mills.
This fund is to intensify rehabilitation works at the mill and ensure commencement of production.
Dangote Integrated Steel Rolling Mill was formerly known as Osogbo Steel Rolling Mills is based in Oshogbo, Osun State in Nigeria.
Reminiscent of the industrial phase of the 1980s in Nigeria, Dangote Integrated Steel Rolling Company, Oshogbo in Osun State (formerly Oshogbo Steel Rolling Mill) will soon roar in productive noise again, courtesy of the recent injection of a N10bn facility by Dangote Industries Limited.
The fund injection, according to a statement from the Head of Administration and Human Resources, Dangote Integrated Steel Rolling, Alhaji Bishira Abatcha, covers the renovation and reactivation of facilities in the once decrepit steel.
Oshogbo Steel Rolling Mill, as it was known, was one of the steel rolling mills established by the Alhaji Shehu Shagari-led administration in the country, with the focus of steering Nigeria's industrial development, especially in the steel sector in such a way that the country would be able to put up a competitive stance against the invading onslaughts from European countries in the area of steel importation into African countries.
Specifically, Oshogbo Steel Rolling Mill was established by the Federal Government of Nigeria in the early 1980s as one of the three inland rolling mills in the then integrated steel development scheme of the government. It had an installed capacity of 210, 000 metric tonnes of steel per annum and was privatised on August 27, 2002, and bought into by Dangote Industries Limited to become Dangote Integrated Steel, a division of the Dangote Group. The Share Purchase Agreement was signed in December, 2005.
Apart from aiding faster industrial development, the steel companies, including Jos Steel Rolling Mill, Katsina Steel Rollling Mill and Oshogbo Steel Rolling Mill, were established with the vision that by the year 2000, they would have become the much needed base for economic and industrial revolution in Nigeria.
However, by 1990, the steel rolling mills, were already dehydrated operationally, due to paucity of fund and poor management. The administration of former President Olusegun Obasanjo, therefore, saw no point in investing more fund into the operation of the mills, thereby paving the way for an outright privatisation of the mills, including the Oshogbo Steel Rolling Mill.
Currently, Dangote's steel empire has a production rate of 400,000 metric tonnes of steel per annum. It specializes in production of MS and HT ribbed bars from billets as well as plain and re-bar steel.
Dangote Integrated Steel Company is supported by an independent 42.5MW power plant close by for electricity. It is also connected to a railway, making transport of processed steel much easier.
These two factors make DISC efficient compared to its competitors such as Jos Steel Rolling Mill who have been experiencing electricity problems.
There is also a school close by, the Dangote Academy Training School that offers technical training for steel workers.
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