NSC labor union urges SEC to hasten reopening of steel mill

The labor union of the debt-strapped National Steel Corp. has urged the Securities and Exchange Commission to step in and help push for the immediate reopening of the mothballed steel plant in Iligan City.

NSLU-FFW president Simplicio Villarta Jr. has asked the SEC to expedite the signing of a memorandum of agreement (MOA) between NSC creditors and Indian firm Global Infrastructure Holdings Ltd. (GIHL) — one of the bidders currently negotiating for the rehabilitation and operation of the Philippines’ biggest steel maker.

Villarta noted that the only matter pending prior to the actual formal takeover and hiring of NSC is the MOA.

"We are quite concerned with the pace and the way the events are unfolding. While we have extended our best helping hands to the bidder, the creditors and the liquidator himself in expediting this exercise, we have not felt the same zeal and enthusiasm from the SEC and the other government agencies nor from the liquidator himself to push vigorously for the immediate reopening of NSC and eventual hiring of our personnel," Villarta said.

"We have been praying for this golden opportunity to finally realize the re-opening of the NSC plants and restore our means of livelihood. It will be most appreciated as it is to the best interest of all of us if indeed the MOA can be signed and the reopening be made the soonest possible time," Villarta added.

GIHL earlier said it intends to retain the existing staff of NSC and even upgrade their skills, knowledge and literacy in computer utilization.

The union comprises some 2,000 workers who were displaced with the closure of NSC in November 1999 under the weight of an P18-billion debt.

The proposed rehabilitation of NSC is expected to generate P25 billion in annual revenues, industry studies showed.

With an annual production of 1.5 million tons of steel products priced at $300 per ton at the current world market prices, NSC could generate revenues of about $450 million annually or a total of $4.5 billion in 10 years.

NSC is reportedly spending at least P2 million every month just to maintain its facility in Iligan City and it is estimated that it would cost at least P15 million just to reopen the plant.