MANILA, Philippines - The Board of Investments (BOI) warned Global Steel Philippines Inc. (GSPI) of cancellation of registration if the steel firm fails to respond to its letter asking for a detailed report on the company’s operations.
Global Steel is the only manufacturer of hot rolled coils (HRC) and cold rolled coils (CRC) in the country. After closing down its Iligan plant last year, the Philippines has resorted to importing its steel requirements.
BOI Managing Head Cristino L. Panlilio said the agency has already sent a letter to Global Steel asking them to detail their program and how they can resume their operations. Panlilio said they have until the end of the month to respond to the letters.
The cancellation of a BOI registration would mean that Global Steel will no longer enjoy income tax holidays (ITH) and other benefits accorded to BOI-registered firms. However, Panlilio stressed that Global Steel can still operate even without BOI registration. “We will not cancel their business permits. We don’t have the authority to do that.”
At the same time, Panlilio said he will speak with one of the creditor bank of Global Steel. Panlilio said he will talk to Lucio Tan owned Philippine National Bank (PNB) to check the status of the loan.
It is important for the Iligan plant to operate because steel is a major industry and is important especially now that the country is trying to implement infrastructure projects.
We are worried that our steel industry is being left behind,” Panlilio said in an earlier interview. “We are very concerned.”
“With the construction boom, we are not even able to supply our own requirement of steel billets,” Panlilio, who is also an undersecretary of the Department of Trade and Industry (DTI) added.
Panlilio has formed a BOI task force to investigate Global Steel. Raul V. Angeles was tasked to head the task force.
“They told us they can operate in July. They said they will be restructuring their payables,” Angeles said in a separate interview.