Management of Premium Steel and Mines Ltd. (PSML), has said the recent five per cent increment on importation of steel raw materials was hampering growth of the company.
The General Manager, Corporate Affairs of PSML, Mr Emmanuel Etaghene disclosed this why speaking with newsmen in Udu Local Government Area of Delta.
He appealed to the Federal Government to create the enabling business climate by way of incentives for the steel industry to thrive in the country.
Etaghene also said the cost of electricity was a great challenge confronting the growth of the sector.
“What we are producing now, our local people cannot afford it because its too expensive for them, the quality is too high.
“What our people need is just low carbon steel. The local market will not agree to buy at the rate we are selling because of the quality, which is one of the constraints we are facing.
“Recently, there was a five per cent increment on tariff for pellet importation and it is killing the business.
“You can imagine why many of the Steel Companies had to close up. That five per cent is enough for us to keep our 500 staff.
“Government should look at this area and bring down the tariff and then make the business more accommodating so that more people can be employed
“Electricity is another constraint killing the steel industry in this country. The tariff on electricity is very huge. What we are paying now is not sustainable and not economical to our business,’’ he said.
Etaghene also solicited the cooperation of host communities and relevant stakeholders to revive the industry in order to meet the huge demands of Nigerians.
He denied the rumour that management of the multi-million naira steel plant was engaged in assets stripping.
“PSML has invested several billions of naira in the plant to ensure that the once comatose company is back to life and meet the steel demands of Nigerians.’’
It would be recalled that PSML was formally known as Delta Steel Company, Ovwian-Aladja. NAN
