Global Ferronickel Holdings Inc. said Thursday it completed the acquisition of an additional 24 percent in Seasia Nectar Port Services Inc. for P192 million.
The purchase, which increased the company’s stake in the Mariveles port operator to 64 percent, is part of FNI’s plan to develop a $50-million steel manufacturing plant in Bataan province.
“Our investment in SNPSI paves the way for the successful operations of our steel processing plant located in proximity to the terminal,” FNI said.
“With SNPSI, FNI will be able to support the operations of the steel plant and may save on production cost. Easy and steady access to port services in relation to the importation of raw materials is crucial, especially during construction of the steel plant,” it said.
The deal will also enable FNI to diversify to other businesses and tap on its growth potential.
SNPSI started commercial operations in 2016 as a joint venture among Seasia Logistics Philippines Inc., Nectar Group Ltd. and Web Technologies Inc.
It operates the first purpose-built dry bulk terminal within the Freeport Area of Bataan in Mariveles. The terminal handles shipments of coal, clinker, silica sand and cement raw materials, steel, fertilizer and other dry bulk cargoes.
FNI earlier reported plans to build a rebar steel rolling plant in Bataan to take advantage of the increased demand for steel amid an infrastructure boom. The plant will have an annual output of 60,000 tons.
Its construction was supposed to start this year, but was delayed after its Hong Kong-based joint venture partner backed out from project amid the pandemic.
FNI, the second-largest nickel producer in the country, is now looking to start construction of the mill next year.
The company through unit Platinum Group Metals Corp. operates a mine in Surigao del Norte province.