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STEEL
products distributor and manufacturer, TKC Steel Corp.,
(TKC), is looking for opportunities in the mining sector
to create new revenue stream.
At the
sidelines of its annual stockholders’ meeting Friday,
president and chief operating officer Anthony Dizon said
they chose the mining sector because it complements the
company’s main business.
He said
the TKC’s interest is zeroed in on mining iron ore.
“The
slowdown and inflationary pressures are dampening our
growth objectives in the Philippines and China. It’s
time to explore new opportunities and synergize them
into our present operations,” said Dizon.
Without
defining details of the plan, he said they are open to
forging partnerships with existing mining companies. He
hinted they might even spin off a new vehicle to handle
its foray into the sector.
TKC, a
listed company controlled by the Tiu family, has been
exporting steel billets to Saudi Arabia. The company
delivered an initial shipment of 10,000 metric tons of
5SPPS grade last month to the Middle Eastern country.
Steel
billets are long, rectangular or cylindrical unfinished
bar of iron or steel. These are currently priced at more
than $1,000 per ton.
Dizon
said the initial shipment will be followed by a monthly
shipment of about 10,000 to 20,000 MT to other
prospective buyers.
“With
world steel prices at their highest levels, the
opportunity presented itself for the company to take
advantage of opening new markets for Philippine steel
billets and realize substantial gains from the
situation,” he said.
TKC has
controlling stakes in Treasure Steelworks, which
operates the largest billet-making plant in the country;
as well as in ZZ Stronghold, a manufacturer of steel
pipes in the southeastern Chinese province of Fujian.
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