$80m steel company inaugurated at Prampram in Ghana
President Nana Addo Dankwa Akufo-Addo yesterday commissioned the first phase of an $80-million steel manufacturing company under the One-district, One factory (1D1F) policy at Larkpleku in the Ningo-Prampram District in the Greater Accra Region.
Said to be the biggest fabrication plant in West Africa and the third in Africa, the factory comes with a training school.
The factory, which sits on a 100-acre plot of land, uses scrap metals collected from across the country as raw material for the manufacture of iron rods, wire rods and round bars.
It has an installed production capacity of 250,000 tonnes per annum.
Known as the B5 Plus Steel Plant, it will create 2,000 direct and indirect jobs.
The second phase will include an investment of $70 million, with an installed capacity of 300,000 tonnes of mixed steel goods.
True reflection
Commissioning the project, President Akufo-Addo noted that it was a true reflection of the benefits of the 1D1F policy that had created thousands of jobs and the expansion of value addition activities in the country.
He said it was gratifying that the B5 Plus Steel Plant was converting scrap metal gathered from across the country into building materials to feed the construction industry in Ghana and the entire ECOWAS region.
He said the company would assist the government’s agenda of import substitution, export diversification and industrial transformation and gave assurance of the government’s continued commitment to provide strategic support for companies and enterprises operating in the country.
President Akufo-Addo explained that his administration would continue to enhance the existing incentive framework designed to make 1D1F-designated companies more competitive and sustainable.
The incentives, he said, included tax holidays, import duty waivers and interest rate subsidies, which were designed to help build the capacities and competitiveness of the enterprises and position them for greater productivity and efficiency.
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President Akufo-Addo noted that his administration had, before assuming office, been aware of the grave challenges posed by thousands of students and apprentices who came out annually from schools and training programmes, respectively.
It was to address those challenges that the government started the 1D1F initiative, which currently had 76 factories operating and employing some 139,000 people, he said.
When all 1D1F projects came on stream, the President said, it was expected that 258,000 people would get direct jobs.
Clearly, he said, the policy had the potential to absorb many young graduates into well-paying sustainable jobs within their districts.
Reacting to requests by the Member of Parliament (MP) for Ningo-Prampram, Mr Sam George, for the streamlining of land acquisition, increased provision of water and electricity so that the company would expand and employ more of his constituents, so that he could retain his seat, President Akufo-Addo gave an assurance that the issues would be addressed.
“When that is done, I will leave the future political career of the MP in the responsible hands of the good people of Ningo-Prampram,” the President said, drawing applause and laughter from the gathering.
He said the government was already working systematically to dismantle barriers to greater productivity for the full enjoyment of the incentives to be guaranteed by the company and others.
President Akufo-Addo urged the managers of B5 Plus to take advantage of the various incentives and establish similar industrial enterprises in other parts of the country.
The Minister of Trade and Industry, Mr Alan Kyerematen, in his remarks, indicated that over $4 billion worth of iron and steel products were imported annually, making them the largest imports after automobiles.
He said that had made the establishment of the B5 Plus factory to go a long way to bridge the gap between the production and demand for steel locally owing to the role steel and iron played in value addition of the country.
The country, he stressed, remained a hub for some of the highest quality iron ore in the world.
However, for several decades, it had not been able to add any value to that raw material.
“With the establishment of a statutory corporation to guide the development of an integrated iron ore industry, we are developing the downstream sector, so that when Ghana eventually begins to mine the ore, it will feed into the downstream sector and ensure the provision of high quality jobs, which are key to any economy,” Mr Kyerematen said.
The Chairman of B5 Plus, Mr Mukesh Thakwani, expressed the company’s gratitude to President Akufo-Addo for his guidance and encouragement under the 1D1F programme.
He appealed to the President to impose an across-the-board ban on certain finished imported goods, just as other African countries, including Nigeria, Gabon and Cote d’Ivoire, had done because it posed a major threat to Ghana’s industry and would affect the company’s operations.
“We are able to produce these products locally in excess quantities and can serve not only the Ghana market but neighbouring countries too,” he added.