News Global Market інвестиції 3762 27 October 2025
Ogun State plant to start operations by mid-2026 and reduce steel imports
China’s Stellar Steel Company Limited is investing $450 million in the construction of a steel mill in Ogun State, Nigeria. The project, which is being implemented by subsidiaries of Galaxy Group and RSIN Group from Fuzhou (China), is expected to be operational by mid-2026. This was announced by the governor of Ogun State, Prince Dapo Abiodun.
The new plant will produce hot-rolled coils (HRC), steel doors, and gas cylinders, which will significantly reduce imports of steel and finished steel products into Nigeria.
During a meeting with Dapo Abiodun, RSIN Group Vice Chairman Yu Xiaotang said that implementation is proceeding according to schedule.
“We have already completed all the levelling and foundation work, so construction is progressing according to plan. This is our largest project in Nigeria, and we plan to launch next year,” he said.
According to the Stellar Steel representative, the company views Ogun State as a strategic industrial center and encourages other Fujian-based companies to invest in the region, which is experiencing rapid economic growth.
Governor Abiodun recalled that the state recently signed a partnership agreement with the Chinese province of Shandong, paving the way for new joint projects. He assured investors of continued support in the form of simplified licensing procedures, expedited issuance of property certificates, and possible tax breaks.
It should be noted that amid of China’s tightening control over its own steel production and restrictions on excess capacity, local companies are increasingly choosing to invest in production sites outside the country. This allows them to reduce the impact of domestic environmental and regulatory restrictions, as well as avoid the consequences of growing protectionism against Chinese steel in global markets.
The EU, the US, and a number of Asian countries are introducing tariffs, quotas, and control mechanisms to combat dumped imports and China’s excess capacity. In such conditions, Chinese steel groups are seeking to localize production closer to end consumers in order to circumvent trade barriers, reduce logistics costs, and strengthen their positions in emerging markets.
