SON closes steel company over alleged sales of substandard products

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    Business activities were disrupted at the Ispat Steel Company Nigeria Limited in Agbara, Ogun State following the closure of the company by the Standards Organisation of Nigeria (SON) over alleged production and sales of substandard imported steel products.

    The company’s General Manager, Mr Ramesh Gawapathy, was also apprehended by the team along with one of his aides for failing to give satisfactory explanations on the company’s operation.

    The workers and the management staff of the company, located at Opic Estate in Agbara, were caught unaware by the surprise visit of the SON’s enforcement team. Several tonnes of rusted steel, wires and metal plates of various sizes, ranging from 12mm, 25mm and 32 mm were seen scattered in the open inside the company’s premises.

    Mr Bede Obayi, who led the enforcement team, said that the closure of the company followed the expiration of the 60- day deadline earlier given to the company by SON. He said that the SON Director-General, Mr Joseph Odumodu, had earlier ordered all the companies dealing in substandard goods to dispose them off from their warehouses.

    Obayi said that the deadline was given at the stakeholders’ meeting on Sept.16 where issues of collapsed buildings were discussed. “We embark on the visit after the expiration of the deadline given by SON. We also receive a tip off that this company was stocking several piles of substandard reinforcement bars,’’ he said.

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    SON closes steel company over alleged sales of substandard products