Aboitiz inks 20-yr deal with smelting firm

MANILA, Philippines—Aboitiz Power Corp. has forged a 20-year power supply agreement with Melters Steel Corp., allowing the steel manufacturing company to secure reliable and affordable supply for its smelting plant.

In a statement, APC said its wholly owned subsidiary Therma Luzon Inc. sealed the partnership last December 26, 2011. Under the agreement, Therma Luzon will supply 40 megawatts of power to Melters Steel’s smelting plant in San Simon, Pampanga.

“Melters is looking forward to a long and mutually beneficial partnership with APC. We are confident that through this long term partnership, Melters will be in a better position to compete in the steel manufacturing industry,” said company general manager Ricardo Lim.

Melters Steel is a steel smelting company that produces steel billets from recycled metals.

Luis Miguel Aboitiz, senior vice president for APC, meanwhile said the company was pleased to forge an agreement with Melters Steel, as this will secure reliable power supply to “power up” and grow Melters Steel’s business.

Therma Luzon, as the independent power producer administrator (IPPA), currently manages the contracted capacities of the 700-MW Pagbilao coal-fired power plants in Quezon. This means that Therma Luzon is responsible not only for the procurement of fuel for the coal facility, but also for the contracting of contracts for potential customers.

Last year, Therma Luzon signed a long-term power supply agreement with mining firm Benguet Corp. to ensure the sustainability of the latter’s operations.

Benguet Corp. had said that the 20-year supply contract will allow Therma Luzon to supply reliable power to the mining company’s current and future mining operations in Itogon, Benguet.

More recently, Thermal Luzon had extended by another year its transition supply contract with state-run National Power Corp. (Napocor) and Power Sector Assets and Liabilities Management Corp.