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Gov't backs P6-B NSC plant rehab.
(From Philippine Daily Inquirer)
Byline: Michelle V. Remo
THE GOVERNMENT is pushing for the P5.95-billion rehabilitation of National Steel Corp.'s steel plant in Iligan to make it an integrated facility that can produce raw as well as downstream steel products.
In line with this, the government is looking for investors who will finance and undertake the project.
According to the task force handling the ISP integration, developing the plant to become a producer of all steel products including raw materials such as thin slabs (used for hot rolled coils) would make the plant more profitable and this prospect should make the project attractive to investors.
The task force said the plant had focused on the production of consumer steel products and had made the country dependent on imported raw materials.
The feasibility study presented to the media yesterday indicated that the plant's rehabilitation and integration plan would yield earnings before interest of P800 million in the first stage, P1.6 billion in the second and P2.13 billion in the third.
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