The Grey Chronicles

2008.November.25

Why is GSPI not part of Ispat Industries Ltd?


Similarly, news reports filed by local reporters and journalists play with facts as though they can do away with it. Whatever happened to check your facts before publication? The reader is presented with various instances and urged to read between the lines. Here are some snapshots:


From Michael Lim Ubac’s Philippine Daily Inquirer: Mittal plans $1.6-B Philippine plant

“As President Gloria Macapagal-Arroyo began a state visit to India, Indian businessmen firmed up plans for investments in the Philippines . . . But the biggest investment plan is Indian steel magnate Lakshmi Mittal’s plan for a new steel plant in the Philippines worth $1.6 billion.”

Note: This was announced by Vinod Mittal, not Lakshmi Mittal, see below.


From Philippine Information Agency’s press release: PGMA hails new $1.6-billion investment of India’s Ispat Industries in RP

“President Gloria Macapagal-Arroyo hailed the planned $1.6-billion new investment of Ispat Industries Ltd., owner of Global Steelworks Philippines, which is so far the biggest single Indian investment in the Philippines.
Ispat Industries Managing Director Vinod Mittal reported on their plan to establish a new integrated steel plant in southern Philippines during a courtesy call on the President Thursday afternoon at the Taj Majal Hotel in Mumbai.”

Note: Unfortunately, Ispat Industries Ltd is NOT the owner of Global Steelworks Philippines, renamed Global Steel Philippines, (SPV-AMC), Inc [GSPI] on 19 August 2005. GSPI’s rightful owner is Global Steel Holdings Ltd.


From Alena Mae S. Flores, Manila Standard Today, 23 December 2003: Global taps UK advisers for NSC

“GIHL’s flagship company is Ispat Industries Ltd., the sixth largest Indian company in terms of fixed assets.”


From Lino Dela Cruz, The Philippine Star, 04 September 2004: Iligan City gov’t agrees to recall, suspend tax levy on National Steel

“The Ispat International, whose subsidiary Global Steel Works International Inc. undertook the rehabilitation of the NSC plant here last April, this year and completed it by the end of July, this year.”

Note: Ispat International, based in The Netherlands, is NOT the same as Ispat Industries, Ltd. based in Mumbai, India. Thus, Global Steel Works International Inc. is NOT a subsidiary of Ispat International, Lakshmi Mittal’s creation in 2004.


From Alena Mae S. Flores, Manila Standard Today, 18 October 2004: India’s Ispat Steel clinches NSC deal

“Global Steelworks International Inc. (GSII), Group’s operating company, and Global Ispat Holdings Inc. (GIHI) [sic], the corporate firm that will own the steel mill’s land, completed the final exchange of documents and the release of P1 billion to creditor banks.
Meanwhile, the Global group plans to produce one metric ton of steel products in the next six months and two mt by the end of 2005. ”

Note: How pathetic! One metric ton is only equivalent to 1000 kilograms, and that is approximately good only for a number of steel drums!


From Dennis D. Estopace and Niel V. Mugas The Manila Times, 31 May 2005 : Whitewash feared in exposé

“Also, the GSII’s parent firm, the Ispat Group of Companies, controls about 52 percent of the world’s total steel production, according to worldwide estimates. The Ispat group operates and manages 14 million tons of steelmaking capacity in the Philippines, Libya, Nigeria, India (including Ispat Industries in India) and Bulgaria.”

Note: Are these reporters idiots? According to IISI, even at 1,142 million metric tons [Mmt] of steel produced in 2005, the combined output of Arcelor-Mittal, the topnotcher for that year, only amounted to 109.7 Mmt, or a meager 9.61% of the world’s total steel production. The Ispat Group of Companies does not even belong to the top 80 steelmakers in terms of output.


From Katrina Mennen A. Valdez, The Manila Times, 20 November 2007: Global Steel workers restrained from protest action

“The NSC was privatized and sold to GSII in 2003 after Global Steel won the bidding; however, the workers claimed the Europe-based LNM Group was more qualified to operate the NSC and should have won the bid.
The LNM Group is the world’s second largest steel producer with operations in at least 12 countries.”

Note: By 2006, LNM Group would become the world’s largest steel producer after Mittal Steel acquired Arcelor to become Mittal-Arcelor! NSC was sold to Global Infrastructures Holdings Ltd [GIHL] and was renamed Global Steelworks International, Inc. [GSII].


From Philippine Daily Inquirer, 27 February 2008: Global Steel may go into iron, nickel mining, readies $1.6B

“Steel maker Global Steel Philippines is considering investing in iron, nickel mining, with initial an investment of possibly $1.6 billion, Environment and Natural Resources Secretary Joselito Atienza said. . . . Global Steel’s plant in the southern city of Iligan is currently under the management of Global Ispat Holdings Ltd., one of the world’s biggest steel producers.”

Note: See above. If Globat Ispat [sic] Holdings Ltd is one of the biggest, how come it is not even in the top-80 list of IISI for 2005? It is, however, No. 66 in 2006!

2005 Top Steel Producers, IISI 2007

2005 Top Steel Producers, IISI 2007

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