Client News
GSII production world class — China, Philippine customers certify
May 28, 2005
Production follows US$30 million investment to rehabilitate plant
(Manila, Philippines) ― International and Philippine customers of Global Steelworks International, Inc. (GSII) have certified that the company’s products meet international standards of quality.
Thirteen written certifications provided by GSII customers over a six-month period and released by GSII president Sushant C. Das today indicate that the company consistently produces and delivers world-class steel products following a $30 million rehabilitation of its Iligan plant.
In August last year, Joseph Lim, president of Osaka Steel Manufacturer, Inc. wrote, “we found GSII’s steel at par with the imported steel in terms of quality, because we understand that you are manufacturing at internationally accepted standards.” Osaka Steel is based in Caloocan. Lim added, “We will always be supportive of your plans geared for both product and market development.”
Tower Steel chairman Alberto Lee wrote GSII that, “The reopening of National Steel Corporation through the Global Steelworks International Inc. is indeed a welcome development for us. The availability of local raw material supply has spelled a lot of advantages to our business, most notably of which is in terms of lesser inventory and corresponding interest costs. We are satisfied with the quality of your products as they conform both to international and local standards.” Tower Steel’s head office is located in Ortigas Center.
International customers indicated similar assessments. China Aviation Industry Supply and Marketing Corporation — which supplies China Aviation — told Das that both firms had registered GSII as a “Key & Reliable Supplier.” Executive director Yu Ivfang wrote Das that GSII’s output was “very satisfactory” and met “critical requirements.” Shangai Huaye Iron & Steel Group Company executive Jerry Zhang wrote that GSII products “meet our specifications and requirements to our total satisfaction.”
GSII ― a subsidiary of Global Infrastructure Holding Limited ― acquired the former National Steel Corporation (NSC) in February 2004. Since then, Das said the company has invested approximately $30 million in rehabilitating the plant, and plans to spend another $20-30 million for further upgrades. “The Iligan City Plant has been rehabilitated by adopting all modern methods and procedures; the rehabilitation process is being supervised very closely by highly experienced engineers from India, keeping in view the modern quality and productivity standards in the international market,” he said.
In a separate development, Datu Samson R. Pacasum, Port Collector of Customs in Illigan, again denied reports that GSII had failed to pay duties and taxes on raw material imports used in the production of products sold locally. “This is not true,” he said of the allegations.
In an earlier written statement Pacasum said reports alleging illegal importation of steel involving GSII are unfounded. “The truth of the matter, as the records will show, is that all importations of steel raw materials of GSII are above-board, legitimate, and pass the customs warehouse.” Attorney Roberto M. Sacramento, district collector of customs, in a separate statement said, “It appears that all importations of GSII are above-board, legal, and within the bounds of law.”
GSII exports 70 percent of its production. Thirty percent can be sold to local downstream manufacturers. As Tower Steel’s Lee indicated, these manufacturers enjoy a number of business benefits as a result of GSII’s resumption of production in Iligan. These benefits include lower inventory costs, lower interest costs associated with procurement, and faster delivery. GSII also provides its product at competitive prices to local manufacturers. Eventually these savings are passed on to consumers, Das said.