The Minister of Steel Development in Nigeria, Prince Shuaibu Abubakar Audu, has commended the management of Premium Steel and Mines Limited, Ovwian-Aladja for preserving the assets of the defunct Delta Steel Company limited now Premium Steel and Mines Limited, urging the new management to ensure speedy resuscitation of the plant in line with the vision of the President Bola Ahmed Tinubu’s administration to industrialize the country and stimulate economic revolution of Nigeria. 

In his remarks during a tour of the Steel Plant at Ovwian-Aladja on Thursday, Prince Audu disclose that he was at the plant to ensure all issues holding down the full revitalization of the company are sorted out, stressing that the federal government was determined to play her role to ensure PSML takes her pride of place in the nation’s steel development.

He emphasised that Premium Steel and Mines Limited should develop a detail proposal with timelines on when to restart production and the area the federal government could intervene, stressing that Tinubu was determined to resuscitate all legacy assets of government in Nigeria so activities could begin for job and wealth creation for the teeming populace.

The Minister discloses that the concern of the federal government was to ensure all steel companies and rolling mills in Nigeria are resuscitated to put the nation on the path of economic recovery and productivity.

Managing Director and Chief Executive Officer of Premium Steel and Mines Limited, Mr Sahil Vaswani, in his welcome address during the Minister’s visit, thanked the federal government for the concern towards the steel sector, stressing that the company was determined to become the leading manufacturer of steel and allied products in sub-Saharan Africa, through global best practices and maintaining highest levels of ethics and integrity. 

Hear him: ‘’Premium Steel & Mines Limited acquired the assets of Delta Steel Company in 2015 through a Sale Agreement with AMCON. At the time of takeover, the plant was in severely deteriorated condition due to vandalism and outdated equipment. Driven by our strong commitment to revive the plant, we introduced cutting-edge technology to rehabilitate the Rolling Mill, our first step in the comprehensive restoration of the integrated steel plant. We are pleased to report that our efforts bore fruit with the Rolling Mill successfully commissioned in March 2018. 

The shutdown of the Rolling Mill in late 2021 was a result of multiple challenges, beginning with the COVID-19 pandemic and culminating in the Russia-Ukraine war, severely disrupting access to essential raw materials, particularly billets. Additionally, difficulties in obtaining foreign exchange and the instability of the Naira further compounded the problem. 

‘’It is important to emphasise that the challenges which led to PSML’s operational shutdown were force majeure in nature, entirely beyond the company's control. That said, during its operational period, the Rolling Mill enabled PSML to contribute to the national economy by producing world-class quality steel, serving major clients such as Dangote, CCECC, and Julius Berger, among others.

‘’At this critical reformative stage of Nigeria, the startup of PSML steel plant is not only important for the company, but it’s a national imperative. As a committed investor, PSML has the potential to revive the dormant steel plant and position it as a catalyst for igniting Nigeria's industrial revolution. 

‘’PSML’s current investment in the steel plant and future expansion plans will not only make it the largest fully integrated steel manufacturer in Nigeria but also a steel hub for high-quality finished steel products for export markets of West Africa, earning valuable foreign exchange for Nigeria. ECOWAS countries itself have a demand of 4.5 million tons and rising, in which more than 50% is imported from China that can be catered by PSML.

‘’Staff welfare is the top priority for PSML, since the company realises the benefits of a motivated workforce. PSML has therefore implemented the new minimum wage system, even when there are other companies who are outliers.

‘’The company’s schools and hospitals are receiving significant attention too. The Technical High School and primary schools have been equipped with state-of-the-art facilities, including an e-library, to enhance teaching and learning. Our schools consistently rank as the best in Delta State and among the top in Nigeria in external examinations. Similarly, the company hospital has been modernized with advanced equipment, creating a conducive environment for doctors and nurses to deliver quality healthcare’’, he said, stressing that the company was poised to phase out obsolete systems and replace them with state-of-the-art equipment since much of the machineries in place can no longer meet the demands of modern production.

He disclosed further that PSML has been in advanced discussions with a Fortune 500 Global Steel maker as a partner to help surmount some of the challenges before the company. 

He therefore called on the Federal Government to prevail on the relevant authorities to allocate Mining Licenses for suitable iron ore deposits to PSML for unhindered local access to raw material,  encourage the company with tariff rationalization for power and natural gas supplies, complete the already approved extension of the railway line to PSML’s raw material handling facility near the jetty to streamline operations, support the dredging of Escravos Bay to enable larger vessels to access the company’s jetty, maintain a supportive policy environment for steel development to generate investor confidence, and promote use of locally produced steel products to reduce import dependence and stimulate job creation for Nigeria’s teeming youths. 

Accompanied by the Permanent Secretary in the Ministry of Steel Development, Dr. Chris Osa Isokpunwu, the Minister was conducted round the various sections of the plant including the Steel Smelting Shop, Rolling Mill, Pellet Plant, Premium Steel Harbour, Direct Reduction Unit etc as well as the Premium Hospital and Schools.

The company's top management staff who were on the ground to receive the minister include Mr. Mahesh Vaswani, Vice Chairman; Mr. Sahil Vaswani, MD&CEO; Mr. Goutam Chatterji, Head Project; Mr. Venkatesan Lakshmanan, Head of Operation; Engr Alloysius Nsidinaya; Engr Emmanuel Etaghene; and Engr Samuel Tanno, among others.

Wado Admin

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