The Light Section Mill (LSM) of the Ajaokuta and Delta Steel Companies would commence production in 2015 the Federal Ministry of Mines and Steel Development said on Monday.
Mr Abdullahi Also, the Director of Steel and Non-Ferrous Metals Department in the ministry, disclosed this in an interview with the News Agency of Nigeria (NAN) in Abuja, Leadership Nigeria claims.
He said both companies had signed Memorandum of Understanding (MOU) with different private investors on billet conversion to iron rods and other steel materials.
“The private investors will bring their billet and convert it to iron rods. We are starting that this year. The investors that signed MOU with Ajaokuta are a consortium from Nigeria and Ukraine. The LSM is a section of the rolling mill built for the production of iron rods and other steel materials.The company is divided into light, medium and heavy section mills.’’
According to officials, the Delta Steel Company was sold to an India company — Global Infrastructure — in 2005.
He said it operated for some time during which it borrowed a lot of money from Nigerian banks.
“When they took over they were producing and selling the products, but unfortunately they were not reinvesting in the plant and in fact, at a point they could even run the plant,’’ he said.
According to Abdullahi, Delta Steel, Jos, and Osogbo Mills are yet to commence operation nine years after their privatisation.
