^

Business

Group opposes grant of incentives to NSC

- Marianne V. Go -
The Philippine Iron & Steel Institute (PISI) is opposed to government’s plan to "artificially" make the mothballed National Steel Corp. (NSC) viable by giving it "unjustified incentives."

In a letter to Acting Trade and Industry Secretary Adrian S. Cristobal, PISI expressed "serious concerns" over reports that government would reopen NSC at all costs by granting special tariff protection.

PISI, the umbrella organization for the local steel industry, said using tariffs to prop up NSC would mean more costly housing, infrastructure and construction, more costly canned milk, sardines, tuna and other processed foods. Local appliances would also become more expensive as well as all other products using steel.

PISI pointed out that high tariff rates on vital raw materials "will increase cost and weaken the global competitiveness of our entire local steel manufacturing industry."

NSC, PISI argued, "must be inherently competitive in terms of cost, price, quality, delivery and reliability."

NSC’s viability, PISI said, "depends on the health and support of the downstream sectors."

PISI said "it is a self-defeating proposition if NSC’s revival means impairing the viability of its customers."

PISI said it supports government’s plant to reopen NSC.

However, it pointed out that investors in NSC must have proven financial, managerial, technical and operational capability.

The potential investors PISI said should have a business plan that allows them to contribute to the overall growth and development of the local steel industry and the Philippine economy.

In reviving NSC, PISI said, "NSC must not be merely propped up by unjustified incentives and made artificially viable."

PISI stressed that the inherent competitiveness of the business plan and of NSC must be verified.

vuukle comment

ACTING TRADE AND INDUSTRY SECRETARY ADRIAN S

CRISTOBAL

INDUSTRY

LOCAL

NATIONAL STEEL CORP

NSC

PHILIPPINE IRON

PISI

STEEL

STEEL INSTITUTE

  • Latest
  • Trending
Latest
Latest
abtest
Are you sure you want to log out?
X
Login

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

Get Updated:

Signup for the News Round now

FORGOT PASSWORD?
SIGN IN
or sign in with