Global Ferronickel Holdings, Inc. (FNI) ventures in the steelmaking business with Hong Kong-based company Huarong Asia Limited in order to take advantage of the increasing steel demand in the Philippines.
“Together with Huarong, FNI will be able to build a Rebar Steel Rolling Plant in the Philippines which is estimated to have an annual output of 600,000 tons of bar,” the listed company said in a disclosure yesterday.
The Hong Kong-based company is said to be a veteran having a 25-year experience in the steel business.
According to FNI, the decision of its management shows the company’s commitment to promote business diversification while at the same time proactively taking advantage of the growing market opportunities.
The Philippine mining firm, through this venture, will incorporate FNI Steel Corporation and FNI Steel Landholdings Corporation owning 51 percent and 60 percent shares respectively.
FNI, which is the second largest producer of nickel in the Philippines, had entered business deals prior this one.
In 2016, a Memorandum of Cooperation was signed by FNI with Baiyin International Investment Ltd. during President Rodrigo Duterte’s visit to China.
The said memorandum is for a strategic partnership evaluating the feasibility of building a stainless steel plant in the Philippines with an investment of $ 500 million to $ 700 million.
Then, another signing of a business deal was participated by FNI a year later, this time with Russia’s Vi Holding LLC for processing lateritic ores.
