The world's number one steelmaker ArcelorMittal has announced its intention to construct a Longitudinal Submerged Arc Welded pipe mill in Nigeria with an annual production capacity of 300,000 mt.
The decision regarding the mill was taken after the finalization of the project feasibility study carried out by ArcelorMittal. The company had received an invitation to invest from the Nigerian government through the Nigerian Content Department (NCD) of the Nigerian National Petroleum Corporation.
The mill will be situated within the Calabar Free Trade Zone in the Cross River state of Nigeria and the construction works are scheduled to be commenced in early 2008, with production starting in 2010. The mill will produce large diameter welded pipes in a size range of 20-56 inches up to X80 steel grade and of wall thickness between 6.4-38 mm, in line with the oil and gas industry's specifications.
Commenting on the initiative, Abubakar Lawal Yar'Adua, Group Managing Director of the Nigerian National Petroleum Corporation, stated that this "investment by ArcelorMittal reinforces the firm resolve and commitment by the Nigerian government to attract genuine investors to Nigeria's oil industry and to ensure further domiciliation of oil and gas services in Nigeria."