FNI President Dante Bravo (PNA photo by Lilybeth Yson)
MANILA -- Global Ferronickel Holdings, Inc. (FNI) announced that it is investing USD50 million in the production of steel rebars, as part of efforts to explore value-added opportunities.
"We are seriously looking at it because of the heavy importation. Local manufacturers cannot cope with local demands," said FNI President Dante Bravo, in a press conference at the sidelines of the company's Annual Stockholders Meeting held Wednesday at the Dusit Thani Hotel in Makati City.
"It’s really an opportunity, and we hope to be able to operate within two years or in 2021," he added.
FNI, the second largest nickel producer in the Philippines, will be partnering with Huarong Asia Limited (Huarong), a Hong Kong-based company headed by a veteran businessman with more than 25 years of experience in the stainless steel business.
Bravo said FNI is incorporating “FNI Steel Corporation” and “FNI Steel Landholdings Corporation” for this venture wherein FNI will have a 51 percent share of FNI Steel Corporation and 60 percent share of FNI Steel Landholdings Corporation.
Of the USD50 million investment, some USD20 million will be used to finance the steel processing plant, to be located in Luzon, with an annual production capacity of 600,000 tons.
Around USD25 million to USD30 million will used as working capital for the production of steel rebars, he said. "To be able to roll it over, likely it’s going to require us USD25 to USD30 million in capital at any given time,” he noted.
While FNI is profitable enough to be able to finance additional expenses on its own, Bravo said the company is open to acquiring loans for the planned expansion. “We might, because we are going to be needing working capital. We can have a short-term loan, it depends really on the requirement,” he said.
Bravo said FNI is targeting to get five percent market share of the 10 million tons local market demand for steel rebars. (PNA)
