Aarti Steel Nigeria, a longstanding participant in the roofing sheet production sector, appears poised to exit Nigeria.
Located in Ota, Ogun State, the steel plant has reportedly faced ongoing challenges with intermittent production for nearly a year, hindering its ability to secure the necessary funding to sustain operations.
According to a source cited by Premium Times, the company has struggled due to significant indebtedness stemming from foreign exchange losses, unfavorable economic policies, and local pricing pressures that compelled it to sell products at a loss. These issues have ultimately led to the decision to halt operations at the plant.
The source further disclosed that several Nigerian and Indian steel companies have shown interest in acquiring the facility. Their goal is to reinvigorate operations and safeguard the numerous direct and indirect jobs associated with the company's supply chain.
The Chairman of the Galvanized Iron Steel Manufacturers Association (GISMA), a sub-sector of Basic Metal, Iron & Steel, and Fabricated Metals Products under the Manufacturers Association of Nigeria (MAN), expressed regret over Aarti Steel's potential sale. He highlighted the economic difficulties confronting the company but remained hopeful. He pointed to Nigerian entities like KAM HOLDING, which possess the requisite expertise, financial resilience, and determination to effectively revive and restructure distressed steel plants.
In conclusion, while Aarti Steel Nigeria faces challenges that may lead to its departure from Nigeria, there remains optimism that capable local entities can step in to rejuvenate such critical industrial assets.
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