NSC reopening to energize Mindanao economy — Roxas

The reopening of the National Steel Corp. (NSC) will energize industries in Northern Mindanao and stimulate the economy of the whole of Mindanao, according to Sen. Mar Roxas, chairman of the Senate committees on trade and commerce and on economic affairs.

"The resurrection of the steel giant will directly and indirectly provide thousands of good-paying jobs, income and livelihood to communities in Iligan City, Northern Mindanao and adjacent regions," Roxas said.

"NSC’s revival is a potential tool in addressing the social and political problems in Mindanao," the senator pointed out.

He said the steel complex could directly and fully engage over 4,000 workers, provide a stable source of subsistence to Iligan residents and rejuvenate downstream enterprises in the region.

Before its closure in November 1999, Roxas noted that NSC paid almost P1 billion in taxes annually to the National Government. In addition, he said the firm paid P127 million in real estate taxes each year to Iligan, effectively funding one-third of the city’s annual budget.

NSC then had a workforce of 1,950 that got paid P50 million in wages every month.

"To put this in perspective, the 18 largest firms in Iligan then had a combined monthly payroll of only P80 million," Roxas said.

With its reopening, NSC is expected to contribute at least P4 billion to the country’s gross domestic product, according to the senator.

Roxas credited President Arroyo for bringing NSC back to life.

It was upon the President’s instruction last year that Roxas, then secretary of trade and industry, shepherded NSC’s case and led talks for the steel facility’s reopening. At that point, the plant’s rehabilitation had bogged down due to counter legal actions between the secured creditors and the Malaysian shareholders of NSC.

Roxas’ efforts paid off on Sept. 29, when government got a P1-billion check from Global Steelworks International Inc., representing its downpayment for acquisition of NSC.

The Philippine arm of India’s Global Infrastructure Holdings Ltd., Global Steelworks offered P13.25 billion payable in eight years and won the bidding to rehabilitate NSC.