Global Ferronickel Holdings Inc. (FNI), one of the country’s largest nickel producers, has decided to shelve its planned rebar steel project under FNI Steel Corp., citing market conditions, capital requirements, and industry outlook as key factors.

The project, which had been under consideration since 2019, was formally abandoned during a board meeting following a strategic review on Friday.

Instead, the FNI management said it will prioritize its core operations, which include nickel ore mining and export, port logistics, and ferronickel smelting.

Green shift a factor

The company intends to leverage the strong market demand driven by the global shift to clean energy and electric vehicles to further grow its main business.

As part of this decision, FNI Steel Corp. will deregister with the Authority of the Freeport Area of Bataan. The project, while discontinued, yielded gains for the company through the appreciation of land acquired in Bataan, which FNI plans to evaluate for profitable future use.

The company reiterated its commitment to delivering long-term value to stakeholders by focusing on its established business lines and leveraging opportunities in the clean energy market.

In the first nine months of the year, FNI saw its net income fall 60.7 percent to P502.6 million from P1.6 billion a year ago, despite record sales.

Revenues dropped 15.3 percent to P5.73 billion, as lower nickel ore prices offset strong shipment volumes of 4.269 million wet metric tons. Low-grade ores made up 65 percent of shipments, with the rest being medium-grade.