Qua Steel Products Limited, Eket is reviewed in this article. We hope you find it informative and helpful for your finding.
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Qua Steel Products Limited located at Eket (QSPL) was incorporated as a private limited liability company on 29th May 1978 to focus solely on manufacturing by melting, molding, forging, pressing, rolling, cutting, and tooling, all manner of iron, steel, and other metals and alloys. These products were readily accepted in the market as they operated beyond the local or domestic perceptive.
As a private limited liability company, according to the law issuing the prospectus was not allowed. Thus, when the capital was raised by the shareholders, profits are also shared according to the percentage of shares of each shareholder that form the business or form the capital base of the company.
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The contract for a tum-key supply of the plant was signed by the formal Cross River State Government on 16th April 1981 with Messrs Daniel and Co S.P.A. of Italy as suppliers and technical partners at the cost of DM 91,350,000.
Construction of the factory was completed in 1983 and in 1984 it was commissioned to begin business operations. ln 1985 a formal technical management agreement was entered to last for twelve months in the first instance and renewable annually subject to agreement by both parties and to a maximum of five years.
Under this type of agreement, Nigerians could not be adequately trained to master the technology of such a complex plant. The agreement lapsed in 1986 due to QSPL’s inability to keep its side of the agreement.
When the company was set up, Delta Steel Company, Aladja, was looked up to as the main source of supply of its main raw materials like billets.
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The supply was to be supplemented by a small proportion of import sources. Unfortunately, these hopes did not materialize as Delta Steel was only able to meet about 10 to 11 percent of the company’s annual requirement of billets, hence the low capacity utilization of not more than 15 percent because of a lack of funds for imports. The initial installed capacity of the company was sixty thousand (60,000) metric tons of rolled iron products.
The company’s basic problem was the lack of basic raw materials. This was due to the fact that almost all the raw materials were imported which made its availability and accessibility difficult. Some facilities were granted to the company to buy and pay on hire purchase or pay in installments.
Also, poor capitalization was another problem of Qua steel products limited especially the issue of working capital. Lack of technical management also contributed to the declining functioning of the industry especially when loans and overdrafts were obtained from commercial or development banks.
Conclusively, there is a greater probability that this company could be revived by the appointment of good technical pens, and an adequate supply of raw materials for production.
The company operated in mass production by offering opportunities for production at the highest level possible and thereby producing at the lowest unit of cost. The company has very good prospects both for employment and economic development of the State.