Publicly listed TKC Steel Corp.'s local subsidiary, Treasure Steelworks Corp., is tapping into a new revenue stream by selling carbon credits.
Treasure Steelworks has signed an emission reduction purchase agreement with Ecosecurities Inc. for the development and sale of carbon credits, TKC told the Philippine Stock Exchange.
The carbon credits would be issued out of the greenhouse gas emission reductions in Treasure Steelworks' operations, particularly, the replacement of its oil electric arc furnaces and ladle furnace as well as the capture of waste gas generated by its blast furnace.
Treasure Steelworks is engaged in the production of steel billets and has the largest installed capacity in the country.
Last November, it shut down operations at its plant in Iligan City to accommodate a modernization program that included the installation and commissioning of new furnaces for a more efficient melting process during steel manufacturing.
Treasure Steelworks also put up a blast furnace to be able to make steel from locally available iron ore.
Earlier, TKC Steel said it was eyeing to venture into mining to generate new revenues in light of the current global economic downturn. Its interest was zeroed in on mining iron ore because it complements its core business.
TKC Steel has another subsidiary, Zhang Zhou Stronghold Steel Works Co. Ltd., which makes steel pipes in the southeastern Chinese province of Fujian.