Speaking during a factory tour at the company in Lagos at the weekend, the Managing Director of HongXing Steel Company, Mr. Andy Hu, urged Nigerians to support the federal government in its bid to diversify the economy. Hu, pointed out that with the drop in crude oil price, there was an urgent need for the country to look for other sources of revenue.

 

He also commended the Central Bank of Nigeria (CBN) for banning the sale of forex for the importation of steel product, saying it has positively affected the operation of his firm.

 

"This new government needs to be encouraged because it is determined to work for the improvement of the condition of living for its people and we are ready to play our part in that. Right now, Nigeria is facing a lot of challenges, but we still have a lot of confidence in the country's future. I believe there are lots of opportunities in this country.

 

"Right now, a lot of foreign investors are scared of coming into the country, but for us, we are willing to do more. Since last July, we started a mega plant in Abia State, which when completed, would be the biggest steel company in West Africa," he said.

 

The Lagos-based steel company was established in 2008 and commenced manufacturing in 2009. It started as a small manufacturing company with less than 100 employees, but has since increased its staff strength to over 700 Nigerian workers directly employed and several others indirectly employed.

 

"I am very passionate about the Nigerian steel industry. In our business, we turn waste into valuable steel materials. Our raw material is scrap iron. In the past, people used to abandon scrap iron, but we buy then and turn such waste into wealth. Our products are iron rods which are commonly used for construction. As a company, we generate revenue for government by paying tax," Hu added.

 

He said by producing locally, his firm has helped Nigeria to save cost of importing finished iron rod. He said the firm cherishes the welfare of its workers, especially the Nigerians, saying that there is a very good management and staff relationship at the company. He also said the company's safety standards are very high.

 

According to him, before HongXing Steel started production, Nigerians used to rely heavily on the importation of steel products which consumes a lot of foreign exchange.

 

"In 2008, when we started business, the price of iron rod was N180, 000 per tonne and was very costly. But today, it is N100, 000 per tonne. That is one of the contributions we have made to this country and we are very proud of what we are doing. Our products are of high quality and are certified by the Standards Organisation of Nigeria. You can see our products across the country," he added.

Source : allafrica.com