In a letter to Acting Trade and Industry Secretary Adrian S. Cristobal, PISI expressed "serious concerns" over reports that government would reopen NSC at all costs by granting special tariff protection.
PISI, the umbrella organization for the local steel industry, said using tariffs to prop up NSC would mean more costly housing, infrastructure and construction, more costly canned milk, sardines, tuna and other processed foods. Local appliances would also become more expensive as well as all other products using steel.
PISI pointed out that high tariff rates on vital raw materials "will increase cost and weaken the global competitiveness of our entire local steel manufacturing industry."
NSC, PISI argued, "must be inherently competitive in terms of cost, price, quality, delivery and reliability."
NSC’s viability, PISI said, "depends on the health and support of the downstream sectors."
PISI said "it is a self-defeating proposition if NSC’s revival means impairing the viability of its customers."
PISI said it supports government’s plant to reopen NSC.
However, it pointed out that investors in NSC must have proven financial, managerial, technical and operational capability.
The potential investors PISI said should have a business plan that allows them to contribute to the overall growth and development of the local steel industry and the Philippine economy.
In reviving NSC, PISI said, "NSC must not be merely propped up by unjustified incentives and made artificially viable."
PISI stressed that the inherent competitiveness of the business plan and of NSC must be verified.