Philippine Steel expects sales to hit P10B this year

The Philippine Steel Corp. (PSC) expects to sell P10 billion worth of steel this year as demand continues to grow in light of the current construction boom.

In a press conference, PSC executive vice president and chief operating officer Tony Lorenzana said the company expects its sales to expand by P2 billion this year from P8 billion in 2007.

About 15 to 20 percent of PSC’s total sales goes to overseas markets.

When asked if their exports will be affected by the potential recession in the US, Lorenzana said PSC’s exports for the last quarter of 2007 went down slightly as China started subsidizing their exports.

However, in spite of the positive sales figures, Lorenzana said PSC cannot expand their operations because they are under rehabilitation.

In 1995, PSC borrowed P4 billion to a consortium of 13 banks led by Equitable PCI Bank which is now owned by Sy-led Banco de Oro Universal Bank (BDO).

Of the entire loan including interest, Lorenzana said they have already paid P5 billion since 1995.

“Technically we did not default. We just found ourselves burdened with debt in 2000 so we asked for a friendly restructuring,” Lorenza explained.

After the restructuring, Lorenzana said the company continued to pay its loan. Unfortunately, he said all payments were only limited to the interest and a big part of the principal remained unpaid.