TKC Steel seeks partners for $1-billion project

MANILA, Philippines - TKC Steel Corp. is scouting for strategic partners and investors to help raise up to $1 billion to fund the construction of the largest integrated steel manufacturing facility in the country.

In a disclosure to the Philippine Stock Exchange, TKC said it has tapped Pricewaterhouse Coopers Financial Advisors Inc. as project management advisers. 

Pricewaterhouse shall identify prospective strategic partners or investors and prepare a work program and fund generation activity to undertake backward integration activities and acquisition of offshore/onshore mining interest for iron ore to be used as raw material feedstock for the blast furnace project of Treasure Steelworks Corp. (TSC).

TSC, a local unit of TKC, is nearing the completion of its blast furnace in Iligan City.

“The program is envisioned to provide the investment environment for further expansion of the steel manufacturing and the mining industry sectors,” TKC said.

TKC’s ongoing modernization program likewise includes the improvement and expansion of TSC’s existing port facility to handle increased production volumes, and the installation of a blast furnace which will allow the company to produce steel from locally available iron ore.

TSC is engaged in the production of steel billets and has the largest installed capacity in the country. In June, TKC and TSC inked a contract to export steel billets to Saudi Arabia.