GIHL’s rehab plan for NSC is expected to be completed before the year ends.
GIHL has committed to spend $15 million on NSC in the first year and another $10 million in the second year.
Based on GIHL’s rehab plan, there would be four phases which, however, would start simultaneously.
Phase 1 of the rehab plan would involve the tinplate line which will be operated with imported temper roiled material.
Phase 2 would involve the rehabilitation of the secondary cold roiled processing units and the four-stand cold mill which would be commissioned and brought on-stream.
Phase 3 would involve the commissioning and start up of the pickle line No. 2 and five-stand cold mill.
Phase 4 would involve the start up of the hot strip mill. GIHL’s decision to hire McLellan as consultant and technical advisor is based on McLellan’s extensive experience in the rehabilitation, enhancement and expansion of steel production and plants.
McLellan provided technical and project management support to Corus (formerly British Steel) for over 20 years.
McLellan has had experience in drawing up rehabilitation plans for electric arc furnace steel production, billet caster, hot mills including Steckel mills, cold reduction mills and tinplate coating lines.
GIHL reportedly intends to retain the existing staff of NSC and will undertake training programs to upgrade their skills, knowledge and literacy in computer utilization.
GIHL is just awaiting final approval by the creditor banks’ individual boards of its offer to lease with option to purchase NSC.
NSC liquidator Danilo Concepcion had earlier said that the NSC Management Committee had "accepted" GIHL’s offer, but that each of the creditor banks’ individual boards would still have to approve the offer.