Client News
Global Steel Philippines targets exports of $200 million in ‘06
Jun 26, 2006
Exports $42 million in first five months, versus $58 million for whole of last year
(Manila, Philippines) — Global Steel Philippines, Inc. (GSPI), the Philippines’ largest steel manufacturer and exporter of cold rolled coils (CRC), expects to export $200 million in steel products this year, according to chief financial officer, Vimal Kumar Somani.
The value of GSPI’s exports in the first five months of this year was $42 million, compared to $58 million for the whole of 2005. Somani said that the export momentum the company has achieved indicates that it will export approximately $200 million in steel products by the end of the year. “We believe this is a very achievable target based on demand and feedback from our customers,” he said.
The nearly 350 percent projected increase in GSPI’s exports this year follows the substantial completion of rehabilitation works and the commencement of commercial operations. “While re-engineering is an on-going process, we have substantially completed rehabilitation of the plant. A significant increase in production and exports is naturally expected keeping in mind the large investments made for rehabilitation,” Somani said.
In March, GSPI successfully re-commissioned its hot strip mill, which has a production capacity of 1.2 million tons of hot rolled coils (HRC) per year. The mill converts steel slabs to HRC and then to CRC.
DPS Raghuvanshi, GSPI president for marketing, said global consolidation in the steel industry continues, with finished steel products showing strong growth. He said GSPI customers have benefited from the company’s aggressive pricing and adherence to international quality standards. “Our customers in China, Vietnam, Malaysia, Indonesia, Italy, Turkey, Pakistan and other countries appreciate our ability to deliver world-class products at affordable prices.” he said.
Commenting on the domestic market, Somani said that GSPI remains committed to satisfying domestic demand for steel. The company sold US$20 million of steel products to the domestic market from January to May 2006. Sales to the domestic market are expected to exceed $100 million for FY2006, in contrast to actual sales of $42 million in 2005.
With regard to GSPI’s application for exemption from value-added tax (VAT), company spokesman Sangram Mohanty said GSPI is entitled to VAT exemption on raw material consumed for exports. “GSPI invited the Board of Investments to inspect the company’s operations for the purpose of completing formalities required for export certification, a normal process and we are hopeful will be completed by end-June” he said.