After incurring huge losses in its hard industry projects, particularly the production of steel products. listed TKC Metals Corp. is shifting to technology, broadband internet and renewable energy (RE) businesses.
TKC is a holding company for Treasure Steelworks Corp. that operates in Iligan City and ZZ Stronghold Steel Works Co. Ltd. based in China.
In a report to the stock market, as of 31 December 2020, Treasure has not resumed plant operations after incurring losses of P46.9 million, P72.4 million and P43.3 million for the years ended 31 December 2020, 2019 and 2018, respectively.
As a result, the company has a capital deficiency of P2.689 billion and P2.643 billion as at December 31, 2020 and 2019, respectively.
ZZ Stronghold is still operating, but, the overall market conditions is still unfavorable coupled with a very volatile steel prices in China due to higher steel supply and the long-term effect of the Covid-19 pandemic, the company noted.
Diversify to survive
Thus, the company is considering to diversify into technology and broadband Internet, and generating renewable energy.
TKC’s short-term plan is to veer away from the investments in the steel business.
Technology and broadband Internet ventures of the company will enable entrepreneurs a full suite of solutions to establish and operate their very own broadband company, according to TKC.
It added the project aims to bring seamless connectivity using wired, wireless and satellite capabilities to cover most of the country.
“This will make Internet universally accessible for everyone in the Philippines. The service extends from the basic connectivity on-wards to e-learning, e-health, security services, e-commerce and all the opportunities the Internet brings,” it said.
The company said “major market and investor opportunity await this project as the demand for the internet services to address our basic needs and services, communications and deliveries continue to be strong amid the significant restrictions and limitations brought about by the Covid-19 pandemic in our everyday lives.”