Chinese steel pipe manufacturer Jiangsu Yulong Group led the groundbreaking ceremony on Wednesday, Dec. 16, for a large-scale factory in Nigeria's Lagos Lekki Free Trade Zone. The event was attended by Nigerian government officials, Chinese envoys and representatives from private companies.
Willy Wen, the company's deputy general manager, said that Jiangsu Yulong Group, which was listed on China's Shanghai Stock Exchange in Nov. 2011, will engage business in the international market.
In an interview with the Xinhua News Agency, Wen said that the Yulong Lekki project consists of three phases of investment, adding that it would be "the No.1 complex welding and seamless pipe manufacturer in Nigeria."
Wen estimated the first phase of investment at $50 million, which would be used to construct a Submerged Arc Welded Pipe production unit with designed capacity of 150,000 tons annually.
The second phase amounting to $60 million would be used to build an advanced equipped steel pipe production unit with another production capacity of 150,000 tons yearly.
Wen said the third phase would be used to set up an OCTG (tubing, casing, drill pipe and line pipe) production unit and matching equipment valued at $10 million.
The project is expected to boost Nigeria's oil and gas industries when completed.
Liu Kan, the Consul-General of the Chinese Consulate in Lagos, said during the ceremony that the project was an important part of China-Nigeria industrial cooperation which would bring win-win benefits to the two countries.
Liu said that the project, which covers 180,000 square meters, is expected to provide jobs to more than 1,000 local people and will boost modern technology transfer by training engineers in the steel fabrication business.
Upon completion, the steel pipe plant will be one of the largest heavy industry plants in Nigeria, the report said.