FNI to produce steel rebars

Published April 2, 2019, 12:00 AM

by manilabulletin_admin

By James A. Loyola

Global Ferronickel Holdings, Inc. (FNI), the second largest nickel producer in the Philippines, is diversifying into steel processing as part of efforts to explore value-added opportunities.

In a disclosure to the Philippine Stock Exchange, the firm said the decision comes in light of the fast-growing steel demand in the country propelled by local infrastructure developments.

FNI said it will partner 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.

Together with Huarong, FNI will be able to build a Rebar Steel Rolling Plant in the Philippines which is estimated to have an annual output of 600,000 tons of steel bars.

FNI said it is incorporating “FNI Steel Corporation” and “FNI Steel Landholdings Corporation” for this venture. FNI will have a 51 percent share of FNI Steel Corporation and 60 percent share of FNI Steel Landholdings Corporation.

FNI Steel will have an initial subscribed capital stock of P75 million while the real estate unit will also have an initial subscribed capital of P75 million.

“This management’s decision is a testament to their commitment to promote business diversification and to proactively take advantage of the growing market opportunities,” the firm said.