Philippine’s TKC Metals Corp announced that it will sell its losing steel manufacturing business in China Billions Steel International, which oversees the group’s China operations through Zhangzhou Stronghold Steel Works to Divine Token for PHP 1.74 billion. TKC Metals Corp said that its China business was incurring operating losses through the past years on adverse business and economic environment, which caused low production and sales volume. TKC Metals Corp said the sale of China operations would ease its financial burden. It would no longer be required to continue to fund the financial reverses being incurred by the ZZ Stronghold. Divine Token, a corporation organized under the laws of the British Virgin Island, will assume TKC Metals Corp’s advances to the China operations. Based in Fujian Province of southern China, ZZ Stronghold is a manufacturer of steel pipes for general construction, water transmission and structural uses. It manufactures Electric Resistance Welded and spiral welded pipes for general construction and water transmission, and prospectively, seamless pipes for the oil and gas development industry. It currently has an annual production of 40,000 tonnes of PE-coated spiral welded pipes and ERW pipes. Aside from Billions Steel International, TKC Metals also plans to sell Treasure Steelworks Corp, whose production of steel billets in Iligan City was suspended since 2013. TKC Metals Corp had suspended its plant operations in Iligan City and terminated its contract with plant employees due to a shortage in power supply in Mindanao. TKC Metals Corp incurred PHP 49.68 million in first-quarter net loss attributable to parent equity holders, wider by 41.8% compared with the PHP 35.04 million recorded a year earlier. The negative bottom line came despite gross revenues improving by 66.4% to PHP 195.23 million from PHP 117.34 million, driven by higher nominal sales value generated by the operations of its subsidiary Zhangzhou Stronghold Steel Works TKC Metals Corp undertakes the exclusive marketing and sales of billets manufactured by its subsidiary Treasure Steelworks Corporation in its billet facility in Lanao del Norte in the southern Philippine region. Steel billets are used as raw materials for downstream steel products such as bars, wire rods, and sections. The firm has almost completed the refurbishment and upgrade of the billet manufacturing plant and the installation of the iron ore beneficiation plant, the sintering plant, and the first blast furnace plant. TKC Metals Corp will also be looking into new technology for nickel leaching, which is a chemical process that will take only two hours to extract nickel from laterite ores and will result in a nickel recovery rate of 20-50%.
Philippine’s TKC Metals Corp announced that it will sell its losing steel manufacturing business in China Billions Steel International, which oversees the group’s China operations through Zhangzhou Stronghold Steel Works to Divine Token for PHP 1.74 billion. TKC Metals Corp said that its China business was incurring operating losses through the past years on adverse business and economic environment, which caused low production and sales volume. TKC Metals Corp said the sale of China operations would ease its financial burden. It would no longer be required to continue to fund the financial reverses being incurred by the ZZ Stronghold. Divine Token, a corporation organized under the laws of the British Virgin Island, will assume TKC Metals Corp’s advances to the China operations. Based in Fujian Province of southern China, ZZ Stronghold is a manufacturer of steel pipes for general construction, water transmission and structural uses. It manufactures Electric Resistance Welded and spiral welded pipes for general construction and water transmission, and prospectively, seamless pipes for the oil and gas development industry. It currently has an annual production of 40,000 tonnes of PE-coated spiral welded pipes and ERW pipes. Aside from Billions Steel International, TKC Metals also plans to sell Treasure Steelworks Corp, whose production of steel billets in Iligan City was suspended since 2013. TKC Metals Corp had suspended its plant operations in Iligan City and terminated its contract with plant employees due to a shortage in power supply in Mindanao. TKC Metals Corp incurred PHP 49.68 million in first-quarter net loss attributable to parent equity holders, wider by 41.8% compared with the PHP 35.04 million recorded a year earlier. The negative bottom line came despite gross revenues improving by 66.4% to PHP 195.23 million from PHP 117.34 million, driven by higher nominal sales value generated by the operations of its subsidiary Zhangzhou Stronghold Steel Works TKC Metals Corp undertakes the exclusive marketing and sales of billets manufactured by its subsidiary Treasure Steelworks Corporation in its billet facility in Lanao del Norte in the southern Philippine region. Steel billets are used as raw materials for downstream steel products such as bars, wire rods, and sections. The firm has almost completed the refurbishment and upgrade of the billet manufacturing plant and the installation of the iron ore beneficiation plant, the sintering plant, and the first blast furnace plant. TKC Metals Corp will also be looking into new technology for nickel leaching, which is a chemical process that will take only two hours to extract nickel from laterite ores and will result in a nickel recovery rate of 20-50%.
