Global Steelworks sets start hot roll coil prod’n

Iligan City – Global Steelworks International Inc. (GSII) announced yesterday that the hot strip mill plant has been fired up and will start production of hot roll coils starting May 2, with an estimated initial output of 30,000 metric tons.

Sashunt Das, GSII president, said rehabilitation work on the hot mill plant was completed last April 25 and it will need four to five days to heat up. The initial output of about 30,000 tons for May will be increased to between 80,000 to 90,000 tons by June.

Das said that with the production of hot roll coils, the steel market in the Philippines does not have to import its requirements.

"The opening of the hot mill of Global Steelworks makes us far more competitive in production being cost effective, flexible, efficient and self-sufficient," Das said.

However, he clarified that the output of the hot mill will be used mostly for internal comsumption for the production of cold rolls. "It is very unlikely that we will sell hot roll coils, it will be for internal consumption," he added.

At least 169 steel workers were hired with the opening of the hot mill and this number will be increased to 200 as production goes full blast, according to Jun Flores, chief of the hot mill plant.

GSII started its operations here more than a year ago following rehabilitation work on the cold mill and has shipped out hundreds of thousand tons of cold rolls to China.

"It has also improved the economy of this city as GSII contributes some P30 million a month in wages, salaries, local contracts and services which multiplies many times in a trickle-down economy for the city" said Sanjay Mathur, spokesman for GSII. – Lino dela Cruz