The Federal Government of Nigeria has started to talk with a Chinese Company, Luan Steel Holding Group, to set up a new steel plant in Nigeria and construction of military hardware at the Ajaokuta Steel Plant.

A delegation visited the Luan Steel Holding Group in the Hefei and Guangzhou regions of China, consisting of the Minister of Steel Development, Prince Shuaibu Audu, the Minister of Defence, and the Permanent Secretary of the Ministry of Steel Development.

It will be the collaboration to find the best financing option to re-launch the Light Steel Mill in Ajaokuta and begin the iron rod production. Earlier the Mines Ministry requested N35 billion from the financial institutions to revive the Ajaokuta Steel Company.

The plan for the collaboration is to build an operational steel industry that would attract more foreign direct investment into the country and create job opportunities.

Luan Steel Holding Group expressed its interest in not only building up a new Steel Plant in Nigeria but also handling a component of the Ajaokuta Steel Plant for military hardware in the country.