Construction work has begun on the $1.6 billion Stainless Steel Tube Mill factory expected to meet the steel needs of the West African sub-region and by extension, Africa.

Located at Idu Industrial Estate, Abuja in the Federal Capital Territory (FCT), it is owned by Designed Stainless Products Limited, one of the leading companies in stainless products in the country. The project, which will be executed in six phases, will form inputs for other industries when completed, thereby reducing imports of such needs into the country, among other impacts on the local content policy of government in several.

It will also serve as DSP Headquarters and be solely financed through a foreign loan. A Korean company, Woo Sung Industrial machinery Co Ltd., is the project's technical partner. Some industries likely to benefit from the company's products after completion include medical, pharmaceutical, beverages, confectionery, furniture, oil and gas, building and construction, automobile and automotive.

While performing the foundation stone laying ceremony, President Umaru Musa Yar'Adua, who was represented by the Minister of Commerce and Industries, Charles Ugwu, described the project as a bench mark in the process of industrialising the country. President Yar'Adua commended the management of the company for its innovation which aligns with government's vision of developing the country through massive industrialisation.

He noted that with the industry's huge potentials, which cut across all human endeavors, more unemployed Nigerians would be employed after its completion, which will give rise to accelerated industrial development and economic growth in the country.

Chairman of DSP, Itekena Michael Abel-Tariah, noted that the foundation stone laying ceremony of the industry marked the beginning of development of the stainless steel sub-sector of iron and steel industry in the country. He thanked President Yar'Adua for his support, adding that his organisation's vision was to build a stainless steel giant in Africa that would meet world standard.

Meanwhile, Abel-Tariah, who is also the company's managing director, took a swipe at local financial institutions, accusing them of not encouraging potential local investors by giving them loan assistance. He described them as anti-enterprise. According to him, "the reforms in the financial sector of our economy have not translated into production of goods and services because of wrong application of the funds raised by the reform.

"The government may have to look into this if it wants to grow this economy. The economy cannot grow only on foreign finance," the DSP boss said, adding that his organisation was disposed to accommodating and partnering any genuine new local equity investor.