Global Ferronickel to start construction of $50-M steel plant in Q1 2021

Global Ferronickel Holdings Inc. (FNI) on Thursday said the construction of its $50-million rebar steel rolling plant in Mariveles, Bataan is scheduled to start in the first quarter of 2021, after being delayed by the COVID-19 pandemic.

In a regulatory filing, the country's second-largest nickel ore producer said the steel plant is set to start commercial operations in 2022, with an annual output of 600,000 tons of steel bars.

"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," said FNI president Dante Bravo.

Bravo, who also serves as president of the Philippine Nickel Industry Association (PNIA), said the industry is banking on the government's ambitious infrastructure program to drive growth.

On Wednesday, Cabinet Secretary Karlo Alexei Nograles said the Philippines is now considering easing the restrictions for travelers from countries with "medium COVID-19 transmission.

In June, the Department of Tourism (DOT) said business travelers from other countries may be allowed into the country once quarantine restrictions have been eased to a modified general community quarantine (MGCQ).

Metro Manila, the country's metropolis where the main gateway Ninoy Aquino International Airport (NAIA) is located, will remain under general community quarantine (GCQ) until October 31. No guidance has been announced so far on what follows.

To support operations of the steel plant, FNI acquired a 40% stake in Freeport Area of Bataan (FAB) port operator Seasia Nector Port Services Inc.

"This helps easy and steady access to port services in relation to the importation of raw materials, especially during construction," the company said.

FNI said it has already surpassed its adjustment target of 5 million wet metric tons (WMT), and is on track to reach 5.6 million WMT for this year."  —KBK, GMA News