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FG Spent $10bn On Ajaokuta Steel Company

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ajaokuta

 

 

The Minister of State for Solid Minerals Development, Mr. Abubakar Bawa-Bwari, has said that the Federal Government had spent over $10bn on the Ajaokuta Steel Company in the last 35 years.

He also said the government escaped paying damages in excess of $525m to Global Infrastructure Holdings Limited by signing a modified concession agreement with the latter to enable the firm to retain the National Iron Ore Mining Company, Itakpe. The modified seven-year concession agreement was signed on August 1, this year.

NIOMCO was designed to feed Ajaokuta Steel Company with the requisite raw materials to produce steel, but both firms have made little progress.

Bawa-Bwari, who appeared before the House of Representatives Committee on Privatisation and Commercialisation in Abuja, said, “The most important thing is that everybody agrees that Ajaokuta should work. We have spent over $10bn over 35 years and we cannot afford to continue to waste more time.

“This modified agreement is the best option available to government today. This agreement will free us from all the legal issues. We will monitor it and ensure that the GIHL too keeps to its promise that they have turned a new leaf.”

The minister spoke amid protests by steel sector stakeholders, including workers, host communities and the Bureau of Public Enterprises.

Bawa-Bwari said that the present administration signed the agreement to free NIOMCO, Ajaokuta Steel Company and the Delta Steel Company, Ovian-Alaja, from the ‘legal encumbrances’ that had stalled the operations of the steel firms for several years since they were first privatised in 2004.

The minister said that it was the administration of former President Goodluck Jonathan that first initiated the modified agreement with the GIHL in 2013 as part of ‘out of court settlement’ for the government’s breach of the original agreement it signed with the Indians in 2004.

He said that the initial concession was to last 25 years with a provision for “automatic renewal.”

However, the minister said the late President Umaru Yar’Adua reversed the privatisation of NIOMCO in 2008 without meeting the requirements of the clauses built into the agreement.

He added that the GIHL reacted by dragging the government before the Court of Arbitration, further crippling the operations of NIOMCO and other steel firms tied to it.

The minister explained how, acting on legal opinion by the Office of the Attorney-General of the Federation, the Jonathan administration opted for an out of court settlement in the form of a modified concession agreement in 2013.

But he noted that the controversy that surrounded the modified agreement again did not allow for its take-off until the current government acted on it on August 1 this year.

But the Chairman of the committee, Mr. Ahmed Yerima; the Chairman, Sub-committee on Steel, Mr. Gabriel Kolawole, and other lawmakers disagreed with the minister.

For instance, Yerima queried why the BPE was not fully involved in the process.

Some members wondered how the same government that spent over $10bn on Ajaokuta Steel was in a hurry to return to the GIHL just to avoid paying $525m damages.

The BPE, through its acting Director-General, Mr. Vincent Akpotaire, said it had not been fully involved in the privatisation of NIOMCO and Ajaokuta since 2004.

Akpotaire recalled that there was only one meeting where the BPE made proposals to the government, but stressed that the agency was not accorded further invitations.

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Manufacturing

BGI Ethiopia Gets New keg tracking solution- Keg Track&Trace

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BGI Ethiopia (Source: 8Sigma)

Montelektro, a leading system integrator in the brewing industry, and 8Sigma, a premium MES provider delivered solution KegTNT (Keg Track&Trace) to a brewery in Addis Ababa.

KegTNT is a software solution that tracks kegs throughout their life stages while inside the brewery and within the whole supply chain.

In addition to the mentioned brewery, during 2021, KegTNT will be implemented in two more breweries owned by the same company, BGI Ethiopia, whose long brewing tradition dates to the first half of the 20th century. The BGI Ethiopia’s owner is French Castel Group, one of the largest African and among the world’s ten largest beer producers.

The Ethiopian customer required a new, modern solution that will enable them to better manage its keg fleet, reduce costs related to the ownership of kegs, improve quality control, ensure better maintenance supervision, and to prevent possible keg losses.

Montelektro and 8Sigma’s scope of supply included the implementation of KegTNT solution that collects and saves all the data about kegs’ lifecycle, tracking it by using the RFID technology.

Its main purpose is to provide real-time tracking and traceability of each keg in the fleet, and better maintenance and quality control.

The scope also included a tablet application for tracking operations inside the brewery and a smartphone application for the sales agents. From now on, maintenance, laboratory, and warehouse staff can use tablets equipped with an RFID reader to manage everyday tasks related to the keg fleet. Sales agents can also report, track, and resolve all complaints through the application on their smartphones. All information is available in real-time, so staff can react immediately and identify potential problems even before they happened.

Within this project, KegTNT was also integrated with a keg filling plant (capacity of up to 900 kegs/h) that is fully automated and robotized. This integration enables the brewery to automatically collect and analyze data about kegs’ filling, like production rates, reject rates, downtimes, and other elements required for an efficient production.

These features of KegTNT should help BGI Ethiopia not only to improve resource utilization and the management of keg fleet, but also to preserve its good reputation and a desirable market position.

“Last year was very challenging for the whole world. The brewing industry, just like all others, was in turmoil. We are satisfied because we have managed to conclude the project in one of the three contracted breweries in the circumstances of travel restrictions. On this occasion, we would also like to thank Montelektro for their trust and partnership on another project we have successfully delivered together.”, said Vladimir Lukić, director at 8Sigma.

Apart from the mentioned project, 8Sigma and Montelektro continue to cooperate. The most important common project is the development and implementation of MES (Manufacturing Execution System) solution for the brewing industry, named BeerVision.

BeerVision schedules, tracks, and manages all production activities inside a brewery, from raw materials to the finished product – beer.

During production, this Industry 4.0 solution collects and analyzes data about the brewing process in real-time and provides fully integrated data for all operational activities. It connects and integrates the process control system (PCS) with Enterprise Resource Planning (ERP).

With BeerVision, companies can make decisions faster and easier and manage their businesses much more efficiently. It also helps them improve their product quality and reduce costs.

Issued by 8Sigma

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Egypt, Toyota Tsusho discuss manufacturing natural gas-powered microbuses

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CAIRO – 13 October 2019: Egypt and Toyota Tsusho discussed on Sunday how the giant Japanese company can contribute to the government’s plans to manufacturing natural gas-powered microbuses.

During his meeting with President and CEO of Toyota Tsusho Mr. Ichiro Kashitani, Prime Minister Mostafa Madbouli emphasized Egypt’s keenness to best utilize its resources by reducing diesel exports’ expenses and transferring diesel-fueled vehicles to natural gas-powered ones or to bi-fuel vehicles that are capable of running on two fuels (natural gas and gasoline) through offering payment facilities.

Mabdouli further stressed that the transfer process needs to be implemented through manufacturing companies that working on Egypt’s soil, in order to enhance local manufacturing, and transfer expertise, according to a cabinet press statement about the meeting. He also ensured that the government is serious in its plans to implementing the transfer process through providing funding programs and incentives to encourage owners of old microbuses.

These ambitions go the lines with the government’s latest unveiled plan in August, aiming to turn 50,000 vehicles into gas-powered annually.

Mabdouli also stressed the government’s readiness to discuss the details of the implementation of the program and accelerate the process according to a specific schedule.

For their part, Toyota Tsusho delegation presented their proposal of “manufacturing high quality microbuses in a way that will meet the Egyptian government’s converting the fuel-powered vehicles.”

Also Read Switzerland’s Head of Economic Cooperation, Development at SECO to visit Cairo

In a previous interview with Business Today Egypt magazine, Toyota Tsusho Kashitani explained his company’s strategy about using diversified fuels, based on the global trend to electrification, while maintaining an environment-friendly technology.

“In order to realize the fuel transfer plan by government, natural gas field development would be necessary to be accelerated and we are ready to support it by expansion of the offshore rig project as referred above,” Kashitani added during the interview.

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Messe Frankfurt studies holding international textile exhibition in Egypt

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Shirts- CC via Maxpixel/ Sony Ilce-7

CAIRO – 19 May 2019: Messe Frankfurt Exhibition GmbH is studying holding an international fair for textile products in Egypt for the first time, announced Egypt’s Ministry of Trade and Industry in a statement on Sunday.

“The exhibition will be an important platform for bringing together exporters and importers from around the world to exchange experiences and views in this field,” the statement read.

The exhibition comes in light of Egypt’s strategic plan to be a trade hub serving the African countries, the ministry said, noting that the country aims to be an international center for all international exhibitions.

Member of the Executive Board of Messe Frankfurt GmbH Uwe Behm said that the company has been cooperating with Egypt for 100 years, adding that the company aims to hold this big international exhibition due to Egypt’s distinguished and strategic geographic place in Africa and in the Arab World.

Egypt Today

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