August 22, 2008

TKC Steel to double production capacity with new equipment

It is reported that publicly listed TKC Steel Corporation is allotting PHP 400 million for the purchase of blast furnace equipment that would double its steel production output to 700,000 tonnes per year from the current 350,000 tonnes per annum. The equipment will be financed from proceeds of its follow on offering this November.

TKC Steel will offer up to 235 million common shares, which will increase the company's public ownership to 25%. The shares will have an offer price ranging between PHP 8 and PHP 11.50 each. Through the offering, it is expected to raise up to PHP 2.6 billion.

Mr Anthony Dizon president & COO of TKC Steel said that "The blast furnace will be commissioned by the fourth quarter of 2008. This will replace imports of steel scraps because iron ore is readily available in the country."

The blast furnace equipment integrates steel production from raw materials such as iron ore or low grade coal. At present, TKC relies on using imported steel scraps for steel billets production.

TKC Steel Corp. operates the former National Steel Corp plant in Iligan through Treasure Steelworks Corp and Zhang Zhou Stronghold Steel Works Co Ltd at Fujian province in southeast China.