NICKEL-ore producer Global Ferronickel Holdings, Inc. (FNI) has announced that the construction of a $50-million rebar steel rolling plant situated in Mariveles, Bataan will start in the first quarter of 2021.
In a disclosure to the stock exchange on Thursday, FNI said that it acquired a 40% stake worth P450 million in Seasia Nectar Port Services, Inc., which is the port operator of the Freeport Area of Bataan, to fund the operations of the steel plant.
FNI said its stake in Seasia Nectar Port Services, Inc. also provides steady access to port services during construction and on the company’s importation of raw materials.
“We would have wanted to begin construction this year but it has been delayed due to the pandemic, specifically the imposed travel restrictions as some of our technical experts are based abroad,” FNI President Dante R. Bravo was quoted as saying. The plant is projected to begin operations in 2022 and once completed, it is estimated to produce 600,000 tons of steel bars annually.
According to FNI, it has exceeded its new shipment target of 5 million wet metric tons (WMT) and is on pace to reach 5.6 million WMT for 2020.
In the second quarter, the nickel-producing firm posted a 46.6% increase in its net income attributable to equity holders to P354.24 million largely because of better nickel ore prices and lower operating expenses. FNI’s revenues for the period fell 11.7% to P1.51 billion after its mining operations were temporarily suspended in April due to the coronavirus disease 2019 pandemic.
On Thursday, shares in FNI at the stock exchange rose 0.78% or P0.01 to close at P1.30 each. — Revin Mikhael D. Ochave
