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 begin by July 2013 with an initial production target of 5,000 metric tonnes per month, which will gradually increase to 10,000 metric tonnes 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.