Allengoal says lease of NSC won’t imperil downstream industries

Allengoal Steel Corp. lead counsel Celso P. de las Alas said yesterday the anxieties of the Downstream Steel Industry (DSI) group will be addressed and assuaged if they will be allowed by the Securities and Exchange Commission (SEC) to formally present their lease proposal over the National Steel Corp. (NSC) plant facilities.

De las Alas was reacting to reports that DSI, which is composed of some 782 companies representing investments of about P62 billion, had aired serious concern over some unsolicited "start-up incentives" Trade Secretary Manuel A. Roxas II has offered to sweeten the NSC lease contract.

"We are prepared to present evidence to show that Allengoal has the financial, technical and operational capability to operate the idled NSC facilities with or without the so-called incentives," De las Alas said.

Allengoal last Oct. 3, 2001 sought the SEC’s approval and authority for the implementation of a lease agreement it had earlier entered into with NSC, whose assets have been placed under SEC jurisdiction on receivership and liquidation. The interim lease and operation of the steel plant is considered the best option for the workers, owners and creditors while a long-term investor or buyer is being sought. So far, Allengoal has come up with the most viable lease offer.

The other day, De las Alas formally asked SEC to receive its evidence on the lease.

DSI earlier reacted to published reports that Roxas was bent on restoring protective tariffs, which they claimed would deny them competitive access to raw materials and place them at a disadvantage in the global market.

"Any government thrust to develop the upstream steel activities must never be at the expense of the downstream industries," DSI said. They sought the intervention of SEC Chairman Lilia R. Bautista, so that no one company would be favored to the detriment of their members.