Global Ferronickel Holdings to venture into steel business
MANILA, Philippines – Global Ferronickel Holdings, Incorporated (FNI), the country's second-largest nickel producer, is diversifying into the steel business.
In a disclosure to the Stock Exchange on Friday, March 29, FNI said it will partner with Hong Kong-based firm Huarong Asia Limited to take advantage of the country's "fast-growing steel demand."
"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 bar," the listed company said. (READ: Philippine nickel industry eyes roadmap to improve competitiveness)
For this venture, FNI will incorporate FNI Steel Corporation and FNI Landholdings Corporation, where the company will hold 51% share and 60% share, respectively.
"This management’s decision is a testament to their commitment to promote business diversification and to proactively take advantage of the growing market opportunities," FNI added.
During President Rodrigo Duterte's visit to China in 2016, FNI and Baiyin International Investment Ltd signed a Memorandum of Cooperation for a strategic partnership, including evaluating the feasibility of building a stainless steel plant in the Philippines with an investment of $500 million to $700 million.