Listed Global Ferronickel Holdings Inc. (FNI) announced on Wednesday that it would start constructing a $50-million steel manufacturing plant in Mariveles town, Bataan province by the first quarter of 2021.
During a virtual briefing hosted by the Philippine Nickel Industry Association (PNIA), FNI President Dante Bravo said his company “would have wanted to begin construction this year, but it has been delayed due to the pandemic, specifically [by] the imposed travel restrictions, as some of our technical experts are based abroad.”
To support the planned plant’s operations, FNI has acquired a 40-percent stake in Freeport Area of Bataan port operator Seasia Nectar Port Services Inc to help ensure the easy and steady access to port services with regard to importing raw materials, especially during the facility’s construction.
FNI would spend about $20 million to build the plant in partnership with Hong Kong-based Huarong Asia Ltd., and another $25 million to $30 million to finance its operations.
Bravo said the company was not specifically eyeing to be a major steel player in the Philippines, but added that the plant was expected to produce at least 600,000 tons of bar annually.
In putting up the plant, FNI will import raw materials, such as steel billets, from China. While the company can make the billets itself, Bravo said doing that requires bigger investments.
FNI is the second largest nickel ore producer in the Philippines and largest single lateritic mine exporter in the world. The company owns two laterite nickel mines: one in Surigao and Palawan.
FNI shares added 3 centavos or 2.38 percent to finish at P1.29 apiece on Wednesday.