Local steel giant TKC Steel Corp. is eyeing $7 million worth of steel pipe supply contracts for a port project in Guangzhou, China as well as an export shipment to the Netherlands.
In a statement, TKC Steel said these contracts would require at least 8,500 metric tons of steel pipes.
TKC Steel also said it recently secured $3 million in supply contracts for projects in the Philippines and China through subsidiary Zhang Zhou Stronghold Steelworks Co. Ltd.
TKC Steel provided over 3,100 metric tons of steel pipes to complete the Haicang water and Xiamen port projects in China and another project in Davao City. These contracts are in addition to the previously completed shipments of pipes to support the construction of the Iloilo International Port project and a number of mining projects in Cebu.
Earlier, TKC Steel completed negotiations with China’s Xiamen Xindeco Ltd. for the purchase of two blast furnaces for 11.5 million Chinese renminbi (about P67 million). The facilities are expected to improve its steel billet production to 600,000 metric tons from 300,000 metric tons.
Based in the Fujian province, Zhang Zhou manufactures pipes for applications such as ERW and spiral welded pipes for general construction and water transmission and seamless pipes for the oil and gas development industry.
TKC Steel president Anthony Dizon said the company has benefited from the economic gains of the Philippines and China, citing an increase in infrastructure development for both countries.
“Our operations in China gives us the opportunity to ride on its bullish economy by supplying the huge domestic market. At the same time, China provides a low-cost production base for our steel pipes which we can export to nearby export markets like the Philippines,” Dizon said.
TKC Steel, the only steel manufacturing firm listed on the Philippine Stock Exchange, just completed its follow-on offering of shares to raise as much as P 2.3 billion. Listing of the shares has been set on Nov. 23.
TKC Steel is part of the Tiu Group of Companies that also owns several businesses in the financial servicing and hospitality and tourism sectors. Among them are iRemit, an overseas remittance services company, Sterling Bank of Asia and the Discovery Hotel Chain.