Foreign direct investment is a key solution to the current recession – Mr. Abass
Can you give us an insight into the company and its operations in Nigeria?
Jiangsu Yulong Steel Pipe Co. Ltd. is the largest steel pipe manufacturers in China with over 35 years experience, the company employs around 3000 people and has an annual production capacity exceeding 2,500,000 tons of steel pipes and tubes and 5,500,000 sq. meters of coating. The company was listed on the Shanghai stock exchange in November 2011 Code number: 601028.SS with a market value of over 2 billion dollars and 1.5 billion dollars assets. Yulong Steel Pipe, Lekki investment FZE, is the largest steel pipe manufacturing complex dedicated to the gas and oil industry in Africa with a total capacity of 600,000 tons, the complex, fully owned by YULONG STEEL PIPE (HK) Investment Co., Ltd. However we are inviting Nigerian investors to be part of this mega project, and we are negotiating with some serious Nigerian partners to allocate shares for them.
Yulong has been serving the Nigerian gas and oil industry during the last 6 years, and we have a traceable record in the country.
How has your company being able to sustain its operation despite the challenges?
The choice of the location of our steel complex in the Lekki free zone, was mainly due to the existence of an industrial infrastructures there, that includes power, the current output of the existing power plant is even double than what we require. However, according to the Lekki FZE master plan, another power plant will be added in the near future to meet the requirements of new investors coming to invest in Nigeria. A new sea port is also part of the master plan and these are part of the key factors that sustains our operations.
Meeting international standards for your products demands the best in machinery and technology, what level is Yulong presently?
Yulong has the best advanced machinery available in the market as all Yulong mills are hybrids. We make a conscious effort to take the best machines from all around the world, so you will find made in china, USA, Germany, Swiss, Netherlands machines all in one place. The second point that we pay lot of attention to is our Research and Development department. Our Lekki mill is a first-class and the latest updated technology available for the industry so far. In other word, Yulong is setting a benchmark for latest technology of steel pipe making. Yulong also offers training for all of its employees and they are all certified.
What can government do differently to help the industry growth?
Yulong investment is a showcase for other Chinese investors, the facilities of the FZE is ideal for creating a modern industrial park within a free zone. So, supporting Yulong and ensuring the success of Yulong in Nigeria will definitely encourage others to come and invest. We are working closely with the NCDMB to ensure the implementation of the local content act. The support the NCDMB is extending to Yulong and other serious investors is the kind of relationship that can fastback the industrialisation of Nigeria.
What are the company’s projections and focus in the next 5years?
As I mentioned earlier, our plan is to expand more in Nigeria. It will interest you to know that all what you see today is just phase one. We still have another two mills coming to Nigeria. As we are very aggressive is our expansion in China, we will be very aggressive in our expansion in Nigeria as well.
How does Yulong cope with funding, in view of the current recession?
We in Yulong believe that this is the right time to invest in Nigeria as we strongly believe that foreign direct investment is a key solution to the current recession. With the use of very advanced technology, we are able to meet global standards with a very competitive price.
On the CSR the organisation is involved in:
On corporate social responsibility, we are glad to tell you that Yulong steel pipe Lekki Free Zone will be happy to be involved in bringing development to the zone and the community by providing bore-hole water for the community as well as to support in the networking project. In education, we are will be supporting the community in providing learning materials to schools in the area of our operation and we intend to give room for industrial training scheme for the local workers and indigenes. Finally, as a caring company, we will support the primary health center provided by the government to the community.