Sunday, February 1, 2015

Re: USA Africa Dialogue Series - Re: NIGERIA NOW HAS 21 FUNCTIONAL STEEL MILLS - AGANGA

Bolaji:

Sometimes "information overload" or what my daughter calls "TMI" (too much information) could lead to distortion of the message or distraction from the issue at hand. 

This is what the posted news story said:

"The Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, on Thursday said the number of functional steel mills in the country had increased to 21 from less than five a few years ago due to the implementation of the Nigerian Industrial Revolution Plan." (my emphasis)

And this is part of what Prof. Udogu wrote that attracted my reaction: "I am not sure that South Korea has this many steel mills housed in that country" (my emphasis).

I certainly know the difference between a steel rolling mill and steel-making from ore. You can't dispute the fact that South Korea has more than 200 steel mills. Here are the four steel-making (from ore) companies in South Korea. 

Dongbu
Dongkuk Steel
Hyndai Hysco
Hyndai Steel
POSCO

POSCO is one of the Chaebols set up by Gen. Park in the 1960s as part of his overall policy of export-led import-substitution industrialization (ELI) that catapulted SK into the newly-industrializing country (NIC) status. Like other Chaebols, POSCO is no longer a state-owned enterprise.

My team (NE Patriots) are losing, and it's all your fault because instead of cheering them hard, I'm here responding to you!

In this one, I think we can say, "There you DON"T have it," Prof.


On Sun, Feb 1, 2015 at 5:10 PM, Mobolaji Aluko <alukome@gmail.com> wrote:


Dear Ike Udogu and Okey Iheduru:

Please note that steel rolling mills are where you make 

     (i) Cast iron (different categories)
    (ii) Rods and bars (both high tensile and mild steel varieties)
    (iii) Wires (in all its ramifications)
   (iv) Structural steels (light, medium and heavy structural)
   (v) Flat sheet steels (plain, and galvanized, and also the entire spectrum
 classified as flats)
    (vi) Stainless and other special alloy steels
   (vii) Rails and pipes
   (viii) Plates (various sizes in width and thickness)

and steel making (making of the billets, from the iron ore at Itakpe) are quite different, even though complementary.  Integrated steel mills do everything - make steel and roll them.

In Nigeria, only two steel-making plants exist - in Ajaokuta (plate capacity of 1.35 mt per year) and Owvian/Aladga (1.02 mt per year).  All the others mini-mills (using scrap ferrous materials as starting raw materials) or rolling mills (using home-made or imported billets).

Finally,  below from Wikipedia, here is a list of top Forty World Steel producers by volume.  That will properly place Nigeria's production.

And there you have it.


Bolaji Aluko

-----


Top producers by volume[edit]

This is a list of the largest steel-producing companies in the world, mostly based on the list by the World Steel Association. This list ranks steelmakers by volume of steel production in millions of tonnes and includes all steelmakers with production over 10 millions in 2013.

The World Steel Association compiles a list from its members every year. Note that due to mergers, year-to-year figures for some producers are not comparable. Also note that not all steel is the same; some steel is more valuable than other steel, so volume is not the same as turnover.

In millions of tonnes (Tg)
Ranking
(2013)
2013[1]2012[2]2011[3]2010[3]2009[3]2008[3]2007[3]CompanyHeadquarters
196.193.697.298.277.5103.3116.4ArcelorMittalLuxembourg
250.147.933.4[4]35.0[4]26.5[4]37.5[4]35.7[4]Nippon Steel & Sumitomo MetalJapan
345.842.844.452.9[5]40.2[6]33.331.1Hebei Iron and SteelChina
443.942.743.337.031.335.428.6Baosteel GroupChina
539.336.437.736.6[5]30.327.720.2Wuhan Iron and SteelChina
638.439.939.135.431.134.731.1POSCOSouth Korea
735.132.331.930.1[5]26.4[5]23.322.9Jiangsu ShagangChina
833.730.229.822.120.116.016.2AnsteelChina
931.531.430.025.8[5]17.3[5]12.212.9ShougangChina
1031.230.429.931.125.833.034.0JFEJapan
1125.323.023.823.5[5]21.9[5]24.426.5Tata SteelIndia
1222.823.024.023.2[5]26.4[6]21.8[7]23.8Shandong Iron and Steel GroupChina
1320.421.422.022.315.223.221.5United States Steel CorporationUnited States
1420.220.119.918.314.020.420.0Nucor CorporationUnited States
1519.317.3[8]19.2[9]17.5[9]---Bohai Iron and Steel GroupChina
1619.019.820.521.614.220.418.6GerdauBrazil
1718.817.316.715.4[5]14.8[6]15.0[6]14.2Maanshan Iron and Steel CompanyChina
1817.217.116.312.98.49.910.0Hyundai SteelSouth Korea
1916.815.116.522.1[5]9.1[5]7.4[6]7.6Benxi SteelChina
2016.115.916.816.315.317.716.2EvrazRussia
2115.715.115.314.7[5]16.719.217.3SeverstalRussia
2215.514.912.111.910.911.39.7Novolipetsk SteelRussia
2315.014.115.915.1[5]11.8[6]11.3[6]11.1Valin Steel GroupChina
2414.312.514.413.8[5]7.0[5]8.2[6]9.1MetinvestUkraine
2514.313.812.48.8[5]8.4[5]6.57.8Jianlong SteelChina
2614.313.612.611.410.610.010.1IMIDROIran
2714.312.714.012.78.911.010.9China SteelTaiwan
2813.513.513.513.613.513.713.9Steel Authority of India LimitedIndia
2913.2------Fangda Steel[10]China
3012.713.211.29.8[5]9.9[5]7.56.2Rizhao SteelChina
3112.515.117.916.7[5]11.015.917.0ThyssenKruppGermany
3211.913.012.211.49.612.013.3Magnitogorsk Iron and Steel WorksRussia
3311.88.5N/A6.45.53.83.0JSW Steel LtdIndia
3411.210.110.28.6[5]7.6[5]6.97.4Jiuquan SteelChina
3510.710.210.210.1[5]10.1[5]8.89.8Baotou SteelChina
3610.37.79.410.0[5]8.5[5]9.0[6]Anyang SteelChina
3710.29.1N/AN/AN/AN/AN/AHandan Zongheng Iron and SteelChina
3810.010.19.99.6[5]9.5[5]9.29.3Taiyuan Iron and SteelChina
World total1,6071,5481,4901,4131,2191,3291,351--

Other major steel producers[edit]



    On Sun, Feb 1, 2015 at 11:58 PM, Okey Iheduru <okeyiheduru@gmail.com> wrote:

    Dear Prof. Udogu:

    I've copied and pasted below a preliminary answer to your inquiry regarding the number of steel mills in South Korea. This is just 1988 figures! After the Super Bowl (which will be played near my neck of the woods in the Valley of the Sun today), I'll dust my files and provide you with an updated figure. For now, you can conjecture what the number of steel mills could be, given the phenomenal expansion and growth of the SK economy since 1988.

    You see, most of the time, Nigerians are their worst enemies, especially some Diaspora intellectuals who rarely return and are grossly out of touch with the reality on the ground--beyond the yellow, alaiye-alaiye journalism they're rely on for their "expertise." Believe it or not, Nigeria is a really good country, all its recent travails notwithstanding.

    Peace as always!

    Okey

    +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

    South Korea

    Industry

    Steel

    Source: http://countrystudies.us/south-korea/50.htm

    In 1989 South Korea was the world's tenth largest steel producer, accounting for 2.3 percent of world steel production. South Korea continued to expand crude steel production--19.3 million tons for 1988, up 14.9 percent over 1987. Domestic demand for steel products increased 8.5 percent from 15 million tons to 16.3 million tons over the same period because of the growing demands of South Korean industry. Domestic demand accounted for 70 percent of the total, mostly because of the increased needs of such steel-consuming industries as automobiles, shipbuilding, and electronics.

    The steel industry grew in the 1970s after the government constructed the POSCO mill to service Seoul's rapidly growing automobile, shipbuilding, and construction industries. In 1988 South Korea's steel industry included 200 steel companies. Iron and steel production was expected to increase in the early 1990s, given the output increases in domestic user industries. Exports were likely to be flat or to decline because of decreased international demand.



    On Sun, Feb 1, 2015 at 1:44 PM, <udoguei@appstate.edu> wrote:


    Opinion on this issue

    I am not sure that South Korea has this many steel mills housed in that country.
     Yet, I believe that this country produces Hyundai and Kia, for example. In our
    country, we cannot produce "a spoke for our bicycles" even though we claim to
    have these many mills. A fact of the matter is that we have produced more than
    enough engineers to use the products of these mills, if they are functioning at
    all, to produce our own cars, etc. Our leaders should invite our best and
    brightest engineers at home and Diaspora and put them to work for the good of
    country. In any case, who am I fooling? Our epileptic "NEPA" does not work
    efficiently. But we need an effective power generating system to run a steel
    industry. Look at what the developing country, India, is doing. This country is
    today involved in lunar exploration. Nigeria and South Africa could lead an
    inspiring economic renaissance in the continent if we put our money where our
    mouth is. We must not wait for the Chinese to do for us what we can do for
    ourselves. This is my two cents on this vexing matter.

    Ike Udogu

    ----- Original Message -----
    From: Mobolaji Aluko <alukome@gmail.com>
    Date: Sunday, February 1, 2015 4:18 am
    Subject: USA Africa Dialogue Series - Re: NIGERIA NOW HAS 21 FUNCTIONAL STEEL
    MILLS - AGANGA
    To: "africanworldforum@googlegroups.com" <africanworldforum@googlegroups.com>,
    USAAfrica Dialogue <USAAfricaDialogue@googlegroups.com>, NaijaPolitics e-Group
    <NaijaPolitics@yahoogroups.com>, naijaintellects
    <naijaintellects@googlegroups.com>, OmoOdua <OmoOdua@yahoogroups.com>, Ra'ayi
    <Raayiriga@yahoogroups.com>, Yan Arewa <YanArewa@yahoogroups.com>,
    "nigerianid@yahoogroups.com" <nigerianID@yahoogroups.com>, NiDAN
    <nidan-group@googlegroups.com>, ekiti ekitigroups <ekitipanupo@yahoogroups.com>,
    NigerianWorldForum <NIgerianWorldForum@yahoogroups.com>

    > Chuks Collins:
    >
    > Don't be lost - since you are so interested only in the South-East,
    > go home
    > and find out how many steel rolling mills are situated there! :-)
    >
    > But to spare you some effort - following which you can verify - at
    > least in
    > 2002,  of the 13 rolling mills, 7 mini mills and 2 integrated steel
    > companies (a total of 22 steel companies):in the country:
    >
    > - there were three steel rolling mills in the South-East:  in Onitsha
    > (Allied Steel Co.), Owerri (Metcombe Steel Co.) and Enugu
    > (Nigersteel Co.),
    >
    > but there were also (in case you are interested),
    >
    > - three in the South-South: in Aladja-Ovwian (Delta Steel Co.,), in
    > Asaba(General Steel Mill,) and in Eket (Qua Steel Products)
    >
    > - four in North-Central: with one in Ajaokuta (Ajaokuta Steel Co.
    > Ltd. ),
    > two in Ilorin (Union Steel Co., Kwara Commercial, Metal and Chemical
    > Industries) and one in Jos (Jos Steel Rolling Company)
    >
    > - two in the North-West: in Kano (Nigerian Spanish Eng. Co.,)  and
    > Katsina(Katsina Steel Rolling Co)
    >
    > - one in Abuja (Baoyao Futurelex))
    >
    > and the rest (nine) are
    >
    > - in the South-West, with three in Ikeja alone (Asiastic Manarin Ind,
    > Continental Iron & Steel Co.,, Universal Steel Co,),  two each in
    > Ikorodu(Kew Metal Industries,, Mayor Eng. Co.,) and Otta (Federated
    > SteelIndustry, Selsametal), and one each in Ibadan (Alliance Steel
    > Co.) and
    > Oshogbo (Oshogbo Steel Co)
    >
    > Much of this information requires updating, particularly with respect
    > death. resurrection and birth of some of the rolling mills and
    > integratedmills - and I am doing so presently - but the above gives
    > an indication of
    > the steel companies' national spread. (See:
    > http://www.afristeel.org/NIGERIAN%20STEEL%20INDUSTRY%20-
    > %20HISTORICAL%20DEVELOPMENT.pdf)
    >
    > After electricity, the iron and steel industry is CRITICAL to national
    > technological development - and again, we got to strive to get it
    > right.
    > And there you have it.
    >
    >
    > Bolaji Aluko
    > Chemical Engineer
    >
    >
    > On Sat, Jan 31, 2015 at 8:05 AM, Chuks Collins
    > <ceesmart62@gmail.com> wrote:
    >
    > > Am a bit lost. Please how many of this steel mills are located
    > within> South East?
    > >
    > > Cheers
    > >
    > >
    > > Chuks
    > >
    > > Sent from my iPad
    > >
    > > On Jan 30, 2015, at 8:55 PM, Okwukwe Ibiam <o.ibiam@gmail.com>
    > wrote:>
    > > Nigeria now has 21 functional steel mills – Aganga
    > >
    > >
    > > January 30, 2015 by Agency Report 15 Comments
    > > <http://www.punchng.com/business/business-economy/nigeria-now-has-
    > 21-functional-steel-mills-aganga/#disqus_thread>
    > >
    > >
    > >
    > >
    > > <http://www.punchng.com/business/business-economy/nigeria-now-has-
    > 21-functional-steel-mills-aganga/?print=1>
    > >
    > >
    > > [image: Minister of Trade and Investment, Mr. Olusegun Aganga]
    > >
    > > Minister of Trade and Investment, Mr. Olusegun Aganga
    > > * | credits: File copy*
    > >
    > > The Minister of Industry, Trade and Investment, Mr. Olusegun
    > Aganga, on
    > > Thursday said the number of functional steel mills in the country
    > had> increased to 21 from less than five a few years ago due to the
    > > implementation of the Nigerian Industrial Revolution Plan.
    > >
    > > He said this when he inaugurated a N60bn integrated steel rolling
    > mill in
    > > Sagamu, Ogun State built by Standard Metallurgical Company,
    > adding that the
    > > government was committed to repositioning the steel sector to
    > access a
    > > substantial share of the global wealth of the industry, estimated
    > at $10tn.
    > >
    > > "Before this administration came on board, we had less than five
    > > functioning steel rolling mills and no cold-rolled steel mill;
    > but today
    > > there are more than 15 functioning steel rolling mills producing
    > reinforced> bars; about three functioning cold rolled steel mills
    > producing cold rolled
    > > flat sheets; and about three producing or about to commence the
    > production> of wire coils. This is a visible evidence that our
    > policies are working,"
    > > Aganga said.
    > >
    > > According to him, steel is at the heart of any country's economic
    > > development and is one of the most important materials widely
    > used for both
    > > domestic and industrial purposes throughout the world, hence the
    > priority> given to the sector in the NIRP.
    > >
    > > He said, "In addition to accelerating the industrial development
    > of a
    > > nation, a vibrant steel sector contributes to the growth of the
    > Gross> Domestic Product and exploitation of Nigeria's abundant
    > natural resources.
    > >
    > > "A vibrant steel sector also generates economic activities in
    > downstream> industries, creates job opportunities and acquisition
    > of technical skills,
    > > and helps in the transfer of technology and provision of machine
    > parts and
    > > tools. This particular project is being executed with 100 per cent
    > > locally-sourced raw materials."
    > >
    > > The minister noted that the establishment of the first phase of
    > the SMC
    > > steel mill and the ground-breaking of the second phase would
    > complement the
    > > company's existing investments in the agri-business sub-sector,
    > pointing> out that the mill ranked among the largest private sector
    > investments in
    > > the steel sector in Nigeria.
    > >
    > > Aganga said, "I am assuring existing investors like SMC and
    > prospective> ones of government's support in the pursuit of self-
    > sufficiency in local
    > > steel production. The implementation of game changers in the
    > sector is
    > > already opening up a lot of downstream sector activities, with the
    > > attendant massive job opportunities and economic empowerment for our
    > > engineers, technicians, artisans and fabricators alike.
    > >
    > > "To date, a number of sectorial policies have been developed
    > under the
    > > NIRP. The Sugarcane to Sugar under the National Sugar Master Plan
    > has> attracted over $3bn in investments."
    > >
    > > --
    > >
    > >
    >
    > --
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    --
    Okey Iheduru, PhD
    http://www.tandf.co.uk/journals/banners/readmyarticle/rrip.gif
    You can access some of my papers on the Social Science Research Network (SSRN) at: http://ssrn.com/author=2131462.




    --
    Okey Iheduru, PhD
    http://www.tandf.co.uk/journals/banners/readmyarticle/rrip.gif
    You can access some of my papers on the Social Science Research Network (SSRN) at: http://ssrn.com/author=2131462.

    --
    Listserv moderated by Toyin Falola, University of Texas at Austin
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