How to revive the Global Steel Corporation in 5 easy steps: Step 1: Convert all payables with the City and NPC into equities, making the City and NPC as part owners of Global Steel. Thus other than earning in taxes the City also earns revenues. Being part owner NPC can also impose cheaper power rates to Global. Step 2: Since we are now part owners of Global Steel, we can now release the much needed titles for them so that they can use it as collaterals for the infusion of new capital coming from India. The release of the title however must carry 3 conditions: One is that the City becomes part owner of the company; Two that Global must invite at least one new down stream industry into the City, perhaps a car manufacturer or a motorcycle manufacturer, like Tata Motors or Baja motorcyles-in order to increase employment opportunities in Iligan; And three is that they must use the Corex Technology in steel manufacturing instead of the blast furnace method-since other than steel Corex allows us to manufacture cement-10 million bags a year on top of the fact that it also generates power! Corex therefore is a 3 in 1 thing-steel, power and cement. Corex has synergy while the blast furnace does not. Step 3: Now that the title has been release and there is an increase in investor confidence, Global can now allow itself to be assumed by a new and much bigger owner which is Uttam Galva (or whoever wants to help)-to the advantage of Iligan and NPC. Step 4: Because of Corex technology and the cement manufacturing aspect we can now invite Holcim and ICC to invest with Global-thereby making the stakeholders of Global into 5-Uttam, Iligan, NPC, Holcim and ICC-thus increasing capital base for Uttam Galva-Iligan. Iligan as a City can impose a 10 year tax holiday for Uttam, reduce real estate taxes, and come up with incentives to encourage more investors into the plant. Step 5: Uttam and the new stakeholders must ask the National government to implement strictly the tariff on cement and steel and to revive the “Buy Filipino First” policy. In this way we control illegal dumping of cheaper alternatives. We will also provide incentives to contractors who buy steel from Uttam. Thus in 5 easy steps we revive Global/Uttam and the City of Iligan.
Posted on: Sun, 25 Aug 2013 05:15:08 +0000
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