December 02, 2008

Global Steel reopens plate mill amid increased world demand

It is reported that Global Steel Philippines Inc has reopened its plate mill in its manufacturing complex amid increased global demand.

Global Steel Philippines said that its entry into steel plate production would translate into USD 26 million in monthly foreign exchange savings for the Philippines. It plans to produce around 20,000 tonnes of plates a month and increase its production gradually.

Mr Sangram Mohanty vice president for corporate communications told reporters that Global Steel’s plates would address the requirements of both the export and domestic markets. He said that “Changing trends and global needs have made it more viable for us to go into steel plates production.”

Mr Mohanty said that Global Steel’s steel plates can be used in various applications such as construction equipment, shipping and drilling platforms, pipelines, tunnel supports and excavator shovels. He said that “We will supply everyone. We will export. We will also substitute imports. The Philippines will no longer depend on imported steel products.”

The company said its entry into the plate market was advantageous to consumers because of competitive pricing, savings on freight costs and quick technical service without compromising on quality. Global Steel is also seeking exports to Asian countries, including Vietnam, Korea, Indonesia and India, which imports 700,000 tonne per year.

Mr Mohanty said the launch of the plate mill was in line with the company’s strategy of fully rehabilitating the assets of the defunct National Steel Corp as stipulated in an agreement when it acquired the facility in 2004.

At present, the country is importing over 72,000 metric tons per annum from Russia, China and Ukraine for commercial grades and from Japan, Korea, Europe for high tensile special grades.