SteelAsia Manufacturing Corporation has offered to buy the National Steel Corporation (NSC) in Iligan City. Southeast Asia's largest reinforced steel bar maker wants to negotiate with the National Development Co. for an asset-purchase arrangement. Read on to learn more about it.
Here are three fast facts about SteelAsia's offer to buy NSC:
1. SteelAsia plans to manufacture beams, plates, slabs and sheet piles in NSC's Iligan City facility.
SteelAsia president Benjamin Yao said in a statement that the company plans to modernize NSC's facilities in order to produce steel products that are currently imported, such as billets, plates and beams. Yao said that SteelAsia will ensure that the factory meets environmental standards.
"We have the expertise and the balance sheet to take over Iligan and re-start our quest for a steel industry that will serve as the backbone of our industrialisation," Yao said in a statement.
2. The company wants to pursue an asset-purchase agreement with the National Development Co.
The reinforced steel bar maker sent a proposal to acquire NSC to Ma Lourdes Rebueno, the National Development Co.’s general manager. It said that it is willing to negotiate with all valid claimants, including the government, for an asset-purchase agreement.
3. If SteelAsia's offer to buy NSC is accepted, it will be the company's seventh steelworks facility.
"We see continuing growth in demand in the coming years," Yao said. "That is why we need to expand. The Iligan plant will be a strategic maneuver for us as a company, and as a country as well in terms of industrialization."
The SteelAsia Group was founded by Benito Yao and his partner Go Kim Pah in 1966. It increased its production capacity from 450,00 metric tons in 2006 to 2.7 million tons in 2016. It currently operates six plants in Meycauayan in Bulacan, Davao, Cagayan de Oro, Batangas, Cebu and Misamis Oriental. Yao added that the company is putting up new facilities in the next two years. This will bring up its capacity to 5 million metric tons.
NSC, which was founded as National Shipyards and Steel Corporation in 1951 in Iligan City, used to be the largest steel-making company in Asia. Unfortunately, it failed to keep up with modernization and has declared bankruptcy. It was eventually sold in 1963 to Jacinto and Son and was renamed as Iligan Integrated Steel Mills.
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