Wednesday, May 8, 2013

The Journey Continues: Tale of Steel Companies, Part 1

Two significant events will happen in the next few months to the only two companies that I have been connected (read: employed) throughout my professional career. These events definitely define my “steel journey.”




Eight months from now, the moribund National Steel Corporation (NSC), then the largest steel company in the Philippines, would have been 40 years. It was established as a forerunner of the National Shipyard Corporation in the 1950’s and later on the IISMI or Iligan Integrated Steel Mill Inc. in the 60’s. All the main plants were located in Iligan City in northern Mindanao. Active and loyal “alumni” based in Manila are organizing a grand reunion on its anniversary month, February next year for all its ex-employees from Iligan Plant, Pasig Plant and Makati-Home Office many of whom are already settled abroad. This will surely be big event to enjoy and reconnect. There will be lots of hugs and kisses and embraces and lots of reminiscing, something which will make everybody’s hearts sink. Once upon a past era, these were the “steel trailblazers” who aspired and dreamed of “building the Country”.

I joined NSC as an engineering management trainee (we were then called Industrial Engineers) barely a month after college graduation. I am proud I belonged to this group, which former president Rolly Narciso described in his tribute as “among the best technical and managerial mind of NSC”. When I left 18 years later, already a developed professional, the NSC ship was already sinking and it was only a matter before this steel giant finally closed down 5years later. In that span, many left the company and the city for good. Notably, many migrated abroad to Canada, the U.S, Australia, New Zealand. the Middle East countries and the neighboring ASEAN countries. Such exodus can be aptly described as “the great brain drain”. Still, quite a number, including me, moved to the big city, Manila while some remained and cast their luck with the lamentable Malaysian and later on Indian owners who likewise closed shop without even taking off, weighed down by lack of capital, technological obsolescence, loss of market and overall mismanagement. What happened to the Iligan plant, its once thriving employees’ community called “Steeltown” and perhaps the lives of its people is reflected in the movie and now Broadway and Manila musical, Full Monty.

What a sad ending to a glorious past!

1 comment:

Unknown said...

Bro, I was there in Iligan when President Tabako sold NSC to the Malaysians since the technocrats are convinced that the Government ain't supposed to run a steel company, and that it's better handled by the private sector - despite the fact that at that time, 1994, NSC belonged to the top ten corporations in the Philippines. Yet the Philippines 2000 of Tabako has privatization of government corporations as a top strategy in making a 'tiger' out of Pilipinas. The Ayalas and the Lopez got the water business in the Metro, for starters, and NAPOCOR, the prime jewel of all, got devoured by a pack of vultures named as Independent Power Producers (IPPs) with contracts so sweet (read: onerous), like 70% of power produced is automatically paid by taxpayers even if it ain't used (or produced). Take a look at your power bill and cry at the many 'unbundled' charges you pay. Now back to NSC. Why is it that a a top performing corporation closed shop after five years after privatization. Global industry trends? That's crap, even if the so-called boutique steel mills in Europe can undersell NSC, the domestic demand for local industrialization can more than make up for it. Alas, the government chose the horribly misnamed'export-driven' economy. Why? what are exported? Electronics, textiles, shoes. In other words, Multinationals like Fairchild Semiconductor SETTING UP SHOP FOR THE CHEAP LABOR, and export it from here to other markets. Brod, next time you see Mr. Ramos, get a lead pipe or a dos por dos and beat him hard. Ang hindi marunong lumingon sa kaniyang pinanggalingan, ay hindi makakarating sa Philippines 2000. We never got there, Man.