FNI gets full control of steel subsidiaries

MANILA, Philippines — Listed Global Ferronickel Holdings Inc. (FNI) will take full ownership of two subsidiaries as it plans to construct  its Bataan steel manufacturing plant on its own.

In a disclosure to the Philippine Stock Exchange yesterday, FNI said its board of directors authorized the company to acquire up to 100 percent of  FNI Steel Corp. (FSC) and FNI Steel Landholdings Corp. (FSLC), as well as  to increase its interest in the rebar steel rolling plant project.

Huarong Asia Ltd. has relinquished its interest in FSC and FSLC in favor of FNI.

“Consequently, FSC and FSLC will be wholly-owned subsidiaries of FNI. FNI will pursue the viability of the rebar steel rolling plant on its own,” the company said.

The rebar steel rolling plant is located in Mariveles, Bataan. “We decided to put the whole investment by ourselves instead of partnering with other parties. We believe we have the capacity to do that,” Bravo said earlier.

He added that construction of the plant is targeted to begin next year.

The company said the facility,  estimated to cost $50 million, would  have an annual output of 60,000 tons of steel bars.

Last year, FNI acquired a 40 percent stake in Freeport Area of Bataan (FAB) port operator Seasia Nectar Port Services in a bid to support the operations of the steel plant.

According to the company,  this will help ensure easy and steady access to port services in relation to the importation of raw materials, especially during construction.