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COATING PLANT PROJECT

The pipe mill and coating plant designed to produce high pressure steel linepipes using the Longitudinal Submerged Arc Weld (LSAW) technology. Through this technology, AMES hopes to meet with over 50% of national demand currently put at 2 million tons estimated at over $3.5 million worth of annual procurement. A similar but future plant would be built to produce linepipes using longitudinal weld pipe technology so as to meet the balance 50% welded pipe requirement. Each plant would cost USD 150 million and would produce 500, 000 tons steel linepipes critically required by the Oil and Gas industry, Agriculture, Civil / Structural Engineering construction, and Federal and State water urban projects. It is assumed that USD 300 million funding would be required to construct both plants simultaneously in Benin-City, Edo State and Yenogoa, Bayelsa State. Both plants when completed in 2018-2019 period are expected to employ an initial 700-1,000 young Nigerian engineers and non-engineers. AMES is a major offtaker for the upcoming Siemens and Edo state government joint venture power project scheduled to be ready in 2018. Otherwise, AMES desires another $30-50 million to build a dedicated 10-15MW power plant to meet the power needs of AMES and also sell to the other emerging businesses around the same location.