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| Global Steel set to book profits for the first time |
| Wednesday, 13 August 2008 18:54 | ||||||
 Global Steel Philippines Inc. is looking at posting profits for the first time since taking over the steel manufacturing complex of the defunct National Steel Corp. in Iligan City in 2004.“We will be on the black. We will go positive this year,” Lalit Kumar Sehgal, managing director of Global Steel, told reporters. The company, however, will register profits only because its parent company—Global Steel Holdings Ltd. of India--would condone interest and penalty charges on loans extended to the Iligan-based firm. “Our parent company will be condoning the interest and penalties. It is considering to convert into equity all loans and advances extended to us,” said Sehgal. The Iligan-based subsidiary is fully owned by the parent firm, one of the big steel producers in India. He did not say if the local company would increase its capitalization in order to facilitate the conversion of advances made by the parent firm into equity. “I’m making money this year. We try to improve our manufacturing process year after year, for better efficiencies and lower costs,” said Sehgal. He said high operating costs would continue to put a dent on overall costs. The company’s monthly water consumption, he cited, amounted to about P700,000, while the electricity bill averages at P50 million each month. Sehgal said while the company exports 70 percent of its production, it could not book higher sales until it produced higher-value products. Sales turnover last year hit $95 million. The company produces mid-stream steel products such as hot and cold rolled coils, steel plates and hot rolled plates, from imported raw materials. Elaine Ruzul S. Ramos
Tags: Global Steel Philippines Inc. steel manufacturing complex National Steel Corp Iligan City Lalit Kumar Sehgal
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