Inadequate funds hamper Technova’s $200m pipe mill

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oil pipelineFunding has stalled the implementation of a $200-million Technova pipe mill project in Ologun, Edo State, the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Ernest Nwapa, has said.

The mill is a 200,000-metric tonne per year capacity pipe mill and coating facility being constructed by Technova Africa Group (TAG) Limited. It is designed to produce cheaper wielded steel pipes for the oil and gas sector.

TAG, an indigenous company, signed a multilevel Original Equipment Manufacturer (OEM) and service Agreement with PSL, the largest Helical Submerged Arc Welded Pipe manufacturer in India, for a fully integrated  pipe mill and coating plant in Nigeria.

Nwapa told The Nation that though the mill was opened last year, it is yet to start operations because of finance.

He said: “In Edo State,  a pipe mill known as Technova is in the making. It has gone beyond construction of infrastructural facilities. They are only waiting for some funding support so that they can start putting equipment and people in place.  The NCDMB wants to ensure that pipe mill is established to produce for the oil and gas industry.

“Besides, the Board is putting in place modalities for the establishment of a brand new 250,000 metric tonnes pipe mill. These are being done to improve infrastructure, quicken operations of companies and improve the economy.”

He said the pipe mill, which is in Abuja, has moved from one to two lines, adding that efforts are being intensified to make pipe mills effective.

He explained that the Board was encouraging the resuscitation of old pipe mills and expansion of new ones in line with the government’s decision to develop local initiatives.

“The country needs to progress from a level where it cannot produce some products for local needs, to a level where it can maximise its potentials for economic growth.” he said.

 

[The Nation]

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