TKC Steel has disclosed to the Philippine Stock Exchange that its decision to produce nickel pig iron was made to address the power supply shortage in Mindanao that limited Treasure Steel’s electric arc furnace facilities from producing steel billets.
TKC Steel said, “The production of nickel pig iron can be done at minimal power consumption through the currently installed black furnace facility”. The company added that production is expected to commence by July 2013 with an initial production target of 5,000 metric tonnes per month, which will gradually increase to 10,000 metric tonne per month toward the later part of the year. TKC Steel said that the nickel pig iron would be exported to Taiwan, Korea and China. The exports are expected to contribute substantial revenues from Treasure Steel.
TKC Steel is an operating and holding company engaged in the manufacturing and distribution of various steel products. Operationally, TKC Steel undertakes the exclusive marketing and sales of billets manufactured by its subsidiary Treasure Steelworks in its billet facility in Lanao del Norte. In line with the realignment of its operations, TKC Steel is now seeking approval from the Board of Investment on the modification of the company’s registration application to include the production of nickel pig iron. Meanwhile, Treasure Steel will continue its steel production using scrap and scrap substitute, which it has developed locally.