Gov't asks Spanish group to invest in National Steel

Government is asking a group of Spanish investors to consider National Steel Corp. (NSC) as a possible investment venture in the Philippines, along with shoes manufacturing, agro-processing and power generation.

Meeting with the Spanish business and trade delegation that accompanied the visiting Queen of Spain, Trade Secretary Manuel Roxas II said the group had expressed interest in exploring possible business ventures in the Philippines.

Roxas said the Philippines could take advantage of its strategic position as a gateway to Asia and an ideal place for investments for companies wishing to establish their presence in the region.

According to Roxas, the Department of Trade and Industry (DTI) has suggested NSC as a possible venture for Centunion Corp., a member of the delegation.

NSC is being packaged to attract foreign investors as part of its rehabilitation plan.

Roxas said other sectors in which Spanish businessmen may invest are shoes manufacturing and agro-processing. He expressed optimism that the delegation would seriously consider these sectors for future investments.

Also in the delegation and representatives from Banco Bilbao Viscaya (BBV) who are looking at a possible shipbuilding venture.

"We can not reveal the location but the company has in fact begun studying specific factors like technical skills and manpower, power supply and other production-related concerns," Roxas said.

Roxas said the Swiss giant Asea Brown Boveri is also in the delegation and is looking at further investments in power generation. ABB has already undertaken a power-generation project involving a diesel-fueled power barge that supplies supplementary power to Mindanao.

"Our distinct advantage is our ample supply of skilled and English-speaking manpower," Roxas said. "Investors appreciate this, they come here despite our obvious limitations in infrastructure."

Latest figures from the Philippine Economic Zone Authority (PEZA) indicate that investments by export-oriented companies shot up by 162 percent this month, from P793 million in January 1999 to P2.085 billion this January.

The biggest investment worth P670 million came from San Technology, a 100-percent Japanese-owned company at the Cavite Economic Zone. The company registered a new project involving the manufacture of magnetic voice coil motor for computer hard disks and pager of cellular phones.

The second biggest investment came from Cypress Semiconductor Philippines, a 99.98-percent American-owned company which launched a new project for the manufacture of fine pitch/flexible ball grid array.

PEZA also reported the registration of E. Telecare International Inc., a P437.2-million enterprise located at Eastwood City Technology park.