04 June 2013

Chinese steel pipe factory to ramp up exports through Subic port

Chinese metal pipe manufacturing firm HLD Clark Steel Pipe Co. Inc. is expected to increase its export operations through this free port after gaining concession to ship via Subic’s New Container Terminal-1 (NCT-1).

SBMA Chairman Roberto Garcia said the Subic Bay International Terminal Corp. (SBITC), operator of the NCT-1, had given the Chinese firm a bigger space for stockpiling its cargo in response to the requirements of the Chinese exporter.

HLD, which is a subsidiary of Huludao City Steel Pipe Industrial Co. Ltd. in China, specializes in the production of high-frequency straight-line welding pipes that are being used as casing pipe for petroleum products.

The company has been based since 2009 at the neighboring Clark Freeport, where it had since expanded its production program for steel pipes from ½ to 14 inches in diameter, including the carbon steel variety.

HLD has actually started shipping its pipe exports here in January after it signed an agreement with the SBMA and SBITC for the use of NCT-1, said SBMA seaport manager Jerome Martinez.

The firm, which ships its products to the United States and Canada, initially tried break-bulk shipment at the NSD area, but realized that the place had no more space left for an eight-hectare stockpile.

Martinez also said that with HLD’s shipment operations via NCT-1, the Subic agency expects to boost its income from the SBMA seaport.

He said that from February to May this year, the SBMA already earned around P3 million from HLD operations, the bulk of which came from SBMA shares from the SBITC.

He added that in the past four months, the Chinese pipemaker had shipped its cargoes using four vessels of from 20,000 to 30,000 gross tons, thereby increasing collections as well in wharfage fees and other seaport payments. (HEE/MPD-SBMA)