Aarti Steel Nigeria, a longstanding player in the roofing sheet production market, has shut down production following financial challenges.
The steel plant in Ota, Ogun State, has reportedly struggled with intermittent production for almost a year, making it difficult to meet the funding necessary to sustain its operations.
Premium Times reports that that severe indebtedness caused by foreign exchange losses, unfavourable economic policies, and other factors depressing local pricing mechanisms forced the company to sell its products at a loss.
These issues are the primary reasons for the plant’s shutdown.
The source also revealed that two other major steel companies based in Nigeria, along with several Indian steel companies, have expressed interest in purchasing the closed plant. This move aims to revive operations and save thousands of direct and indirect jobs linked to the company’s value chain.
The Chairman of the Galvanized Iron Steel Manufacturers Association (GISMA), a sub-sector of Basic Metal, Iron & Steel, and Fabricated Metals Products under MAN, has expressed disappointment over the proposed sale of Aarti Steel, driven by the economic challenges the company is facing. However, he remains optimistic, noting that Nigeria has committed indigenous companies like KAM HOLDING, which possesses the necessary expertise, financial strength, and tenacity to successfully revitalize and turn around such distressed steel plants with relative ease.
