Investment in greenfield mill in Nigeria announced

ArcelorMittal yesterday announced its intention to construct a 300 000 tonne per annum Longitudinal Submerged Arc Welded Pipe Mill in the Calabar Free Trade Zone in Cross River State, Nigeria.

The decision was made as a result of an independent project feasibility study conducted by ArcelorMittal following an invitation to invest by the Nigerian Government.

Construction on the mill is due to begin in 2008, with production starting in 2010. The mill will produce large diameter welded pipes in line with the oil and gas industry’s technical specifications. The investment, which ties in with the medium to long term opportunities for gas pipelines in Nigeria and the Gulf of Guinea, was welcomed by Nigerian and international oil companies. Nigeria is the largest oil and gas producer in Sub-Saharan Africa with planned investments of approximately $42 billion over the next 5 years and ambitions to increase its gas production capabilities.

Mr. Sudhir Maheshwari, Executive Vice President, Finance and M&A at ArcelorMittal said that this investment in Nigeria gave ArcelorMittal access to a major oil and gas market, adding that through this investment they hoped to develop Nigeria into a regional hub for ArcelorMittal’s products targeting the oil and gas industry.