All is set to build the first complex welding and seamless pipe-manufacturing factory in Nigeria. To register its readiness to float the No. 1 pipe production company in Nigeria, Chinese steel pipe manufacturer, Jiangsu Yulong Group, recently held a groundbreaking ceremony for the large-scale factory in Lekki Free Trade Zone, Lagos state. The Jiangsu Yulong Group was listed on China’s Shanghai Stock Exchange in 2011. The project, which consists of three phases of investment, is expected to boost the nation’s rich oil and gas industries when accomplished, Willy Wen, the company’s deputy general manager, said this in an interview with China’s Xinhua.
“ The first phase of the project will be the construction of a Submerged Arc Welded Pipe production unit with design capacity of 150,000 tons of steel annually and this will cost an estimated $50 million in investment. While the second phase will cost about 60 million dollars.” He also said that the Jiangsu Yulong Group would build an advanced equipped steel pipe production unit with another production capacity of 150,000 tons of steel annually, Willy Wen disclosed that the third phase of the Yulong project would establish an OCTG (tubing, casing, drill pipe and line pipe) production unit and matching equipment with a $10 million value, saying the firm’s decision to invest in Nigeria’s oil and gas sector was part of its effort to exploit the international market.
Upon completion, the project is not only expected to create employment for over 1,000 Nigerians, it will also enhance modern technology transfer by training engineers in the steel fabrication business.