By  Naomi Uzor
The Dangote Group recently said that local production of iron rods and steel materials would reduce the incidence of building collapse and other construction failures in the country.

The Technical Director of the group, Mr Sankaran Balasubramania, disclosed this in a parley with journalists who were on facility tour of Dangote Steel Rolling Mills in Oshogbo.

He said that the increasing incidence of building collapse and construction failures would be tackled through production of quality iron rods locally made.

According to him, Dangote Group bought the mill from the Federal Government in 1995 and had invested billions of naira on its rehabilitation to meet current standards and that over 350,000 tonnes of quality steel products will be produced annually when the mill commence production in October this year.

He said that the mill, which was constructed more than 30 years ago and with initial installed capacity of  100,000 tonnes per annum, was only operating at seven per cent of its installed capacity because of engineering construct flaws.

On quality guarantee, he said that the company would for now rely on imported billet, a major raw material, to produce with 50 per cent of billet and 50 percent of scraps in its first phase.

“We have to virtually import all the machines because most of the previous machines were obsolete and construct new water plant, cooling and  compressors systems, among others,” he said.

On challenges of sourcing adequate energy to power the mill, he said the company had four power generating plants that could produce 10.4 megawatts each and that the company chief  advised the federal government to facilitate the connection of the company to the industrial gas network, stressing that the mill had capacity to run on multiple energy sources.

He disclosed that the group had employed and trained 70 per cent of staffers of the old Oshogbo steel rolling mill to enhance productivity and that more than 3,500 workers had been employed to run the mill on two shifts.

Balasubramania said that the mill, when in full operation, would help to conserve millions of foreign exchange being expended to import tonnes of steel products and reduce influx of sub-standard products into the country.