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ArcelorMittal Plans Greenfield Pipe Mill in Nigeria

11/30/2007 - ArcelorMittal announces plans to construct a 300,000 tonne/year Longitudinal Submerged Arc Welded pipe mill in Nigeria, which ties in with medium- to long-term opportunities for gas pipelines in Nigeria and the Gulf of Guinea.

ArcelorMittal has announced plans to construct a 300,000 tonne/year Longitudinal Submerged Arc Welded pipe mill in Nigeria.
 
The company’s decision was based on an independent project feasibility study it conducted after receiving an invitation to invest by the Nigerian Government through the Nigerian Content Department (NCD) of the Nigerian National Petroleum Corp.
 
The mill will produce large-diameter welded pipes of up to X80 steel grade with 20- to 56-inch diameters and 6.4- to 38-mm wall thicknesses, in line with the oil and gas industry’s technical specifications. The mill will be located within the Calabar Free Trade Zone in Cross River State of Nigeria.
 
The investment, which ties in with medium- to long-term opportunities for gas pipelines in Nigeria and the Gulf of Guinea, is welcomed by Nigerian National Petroleum Corp., NNPC, and the international oil companies who see this as a positive step for Nigeria in its progress toward meeting local content targets by 2010.
 
“Our investment in Nigeria gives ArcelorMittal access to a major oil and gas market,” said Sudhir Maheshwari, ArcelorMittal’s Executive Vice President, Finance and M&A. “Through this investment we hope to develop Nigeria into a regional hub for ArcelorMittal’s products targeting the oil and gas industry and in so doing become part of a region with significant growth opportunities in the mid to long term.”
 
Construction on the mill is due to begin in early 2008, with production starting in 2010.
 
Nigeria is the largest oil and gas producer in Sub-Saharan Africa with planned investments of approximately USD 42 billion over the next 5 years. The country has ambitions to increase its gas production capabilities and earn as much from gas as it does from oil through investments in new liquefaction plants and investment in local gas distribution pipelines to improve local consumption.
 
ArcelorMittal is the world's largest steel company, with 320,000 employees in more than 60 countries. The company leads a number of major global markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and strong distribution networks. An industrial presence in 27 European, Asian, African and American countries exposes the company to key steel markets, from emerging to mature, positions it will be looking to develop in the high-growth Chinese and Indian markets.
 
ArcelorMittal’s key pro forma financials for 2006 show combined revenues of USD 88.6 billion, with a crude steel production of 118 million tonnes, representing around 10% of world steel output.