Rebirth of National Steel Corp.a landmark event

(Speech delivered by India’s Ispat Group chairman Pramod Mittal during the inauguration of the National Steel Corp. plant in Iligan City on Feb. 3, 2004)

In the history of a nation, there are few rare events which go down as landmarks and people remember them even generations later.

Those present here today are witness to one such sweet testimony — the rebirth of National Steel Corporation.

It is a privilege that on this red-letter day, Her Excellency, the President of the Philippines, Madame Gloria Macapagal-Arroyo; has kindly consented to inaugurate the start-up of the plant.

This plant, which is the pride of the nation, emotionally bonds this city and adds economic lifeline to the people of Iligan is going to operate under the new management of Ispat Group.

NSC is the newest addition to the Ispat family of iron and steel facilities.

I am told Her Excellency hails from this region and grew up in the Iligan neighborhood not far from here. Looks like a promise she made to this city stands redeemed today my heartiest congratulations Madam.

To be considered, and given an opportunity, to participate in the industrial reconstruction of the Philippines is a matter of great personal satisfaction to me. I am confident we will do our best to live up to your confidence imposed in us. This new chapter of NSC is one about which all participating partners the government, the banks and liquidators, people of Iligan and us – can be proud of.

But the road to this podium has not been easy. It was a one-and-half year long journey. The process was competitive, fair and transparent and the decision is on the merits of Ispat Group which met all the criteria as stipulated in the tender.

Ispat is a focused steel making company. A proven business model drives it. To us business results, product quality, customer, vendor, and employee satisfaction are very important, and creating and comparing with world benchmarks is the index of our business measure.

But to turn around NSC will require more than the will to do so. It needs continued and consistent governmental support and a level playing field. As my father said, we have no magic wand. For NSC to sail and successfully face the choppy waters of global competition. Each side has to commit in full sincerity, for it’s partnership in progress.

Our vision is not restricted just to get NSC operational. The real challenge lies in its growth, debottlenecking trapped capacities and challenging the limits of it’s mills up to two million tons per annum successfully, within the shortest schedule, unbundling the knowledge and latent talent of its employees.

In the next phase, Ispat Group has planned making NSC an integrated steel plant. We will execute the dream, that the founding members of this plant had when it was on the drawing board. Facilities like a blast furnace — supported by a sinter plant, coke ovens, power plant and oxygen plant — will take the existing capacity to over three million tons per annum.

In my brief interaction with the ex-employees and people at large, I have been immensely impressed by their diligence, sincerity, skills and attitude.

Yesterday evening I had the pleasure of meeting almost all of them — from supervisors and above. We have decided to provide employment linked to phased requirement after due assessment.

You are witness to the commissioning of the pickling line, just four days from signing with liquidators and banks. This could be achieved due to the support from liquidator’s office, bankers and employees in the plant. This shows their commitment to start operations at the earliest.

I am also happy to mention that the cold rolling mill complex would be operational in a week, with trials and quickly shift to commercial production. This demonstrates our focused business model and team effort.

It is my honor this function is being witnessed by my father Mr. Mohan Lal Mittal and family members. My father has been a great source of inspiration to me. He has given us the power to vision and cherish ambition.

There are a few persons I would like to make a special mention — City Mayor Franklin Quijano, the president of Philippine National Bank Mr. Lorenzo Tan, the president of Land Bank of the Philippines Mr. Margarito Teves, liquidator Mr. Danilo Concepcion. Mr. Luis Virata, Mr. John Catlow of McLellan, Mr. Laurance Berley, the Indian Embassy in the Philippines and their staff.

My very special thanks to Her Excellency for giving us her valuable time to inaugurate the start-up of the plant and for her encouragement.

Thank you, Salamat.

(Editor’s Note: India’s steel giant, Global Infrastructure Holdings Ltd., (GIHL), which is the umbrella company of the Ispat Group, has won the right to operate the plant after the bidding late last year.)