Philippine steelworks attracts foreign interest
The Philippine Economic Zone Authority (Peza) is acting as broker in the process to find a buyer for the defunct National Steel in Iligan City. Reports suggest that a number of unnamed international companies are looking at the idle integrated steelworks, but are waiting for the state to take care of the plant’s debts, Kallanish notes.
Russian, Chinese, South Korean, Indian and Taiwanese groups have all expressed interest in the site, Peza director general Charito B. Plaza is quoted as saying in the Manilla Bulletin.
Debts remain a key burden on the plant. In November the Iligan city government took control of the plant citing PHP 5.84 billion ($116 million) in unpaid real estate taxes. The company also owes unpaid energy bills to National Power Corp. Dominant Philippine steel firm Steel Asia had considered buying National Steel. It baulked however at the heavy burden of debts and the large investment that would be needed to restart the plant, which has been idle since 2010.
The Philippines has only limited EAF steelmaking capacity and is heavily dependent on imports. For flat products, it is entirely dependent. When president Duterte was campaigning for office he raised the idea of restarting National Steel as a way to spur the domestic economy and attract more manufacturing to the country.
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Anonymous
Very good overview of the weekly steel market.
Anonymous