Foreign steel makers eye Global Steel’s closed facilities

MANILA, Philippines - Foreign steel makers have expressed interest in reviving Global Steel Philippines, Inc.’s (GSPI) closed facility or setting up a new steel plant here, a Trade official said.

Trade undersecretary Adrian Cristobal Jr. told reporters the government has received queries from steel makers from East Asian countries for opportunities in steel production here.

“We can see strong interest from steel makers from China, Taiwan, Korea, Japan,” he said.

He said some are looking at reviving the GSPI’s plant, while others are interested in setting up a new facility.

He said the GSPI’s plant in Iligan, Davao could be revived depending on the market’s need for additional capacity.

Indian-owned GSPI was the country’s biggest steel manufacturer.

GSPI’s plant in Iligan halted operations in 2010 amid financial and labor issues.

The plant has not been in operation since then.

Its plant was previously owned by the government-owned National Steel Corp.

GSPI acquired National Steel’s assets in 2004 after GSPI’s parent firm Global Infrastructure Holdings Ltd. won the bidding.

For those looking to set up their own facilities, Cristobal said some are already in the advanced stages while others are just studying the market.

A draft of the road map for the iron and steel industry presented at the Department of Trade and Industry’s Trade and Industry Development Update showed that by 2030, the country should be a globally competitive provider of quality steel products for domestic users.

In that same year, local production of steel should have a higher share of finished goods at 70 percent from 50 percent in 2012.

As of 2012, the country’s steel consumption reached six million metric tons (MT).

The country produced 3.2 million MT of steel and imported 3.4 million MT last year.