TKC Steel Corp. will cease operations beginning today (Nov. 25) until January next year to give way to the installation and commissioning of new furnaces at its plant in Iligan City.
In a disclosure to the Philippine Stock Exchange, TKC president Anthony S. Dizon said the closure is in line with the programmed modernization of the Iligan billet plant to increase production capacity and for a more efficient melting process.
He said the temporary closure would have minimal effect on the group’s operations, pointing out that the “domestic market cycle for steel products typically slows down in the fourth quarter preparatory to the holiday season.”
“Moreover, the prevailing market scenario provided us an appropriate window to undertake these activities so that we can be ready once the economy recovers and the market strengthens,” Dizon said.
TKC’s ongoing modernization program likewise includes the improvement and expansion of Treasure Steelwork’s existing port facility to handle increased production volumes, and the installation of a blast furnace which will allow the company to produce steel from locally available iron ore.
Treasure Steelworks, a unit of TKC, is engaged in the production of steel billets and has the largest installed capacity in the country. In June, TKC and Treasure Steelworks inked a contract to export steel billets to Saudi Arabia.