The largest steelmaker in the nation, SteelAsia Manufacturing Corp., plans to construct four new production facilities in Luzon and Mindanao over the course of the next three to four years, at a cost of PHP65 billion.
Benjamin Yao, the chief executive officer and chair of SteelAsia, stated during a recent briefing that the company is developing a sizable portion of the steel sector to meet at least 70% of the local demand.
The company is also in discussions with possible investors while it grows its operations.
Establishing new plants
Rafael Hidalgo, senior vice president for business development at SteelAsia, revealed that the four new plants will be located in two locations in Concepcion, Tarlac, and one in Candelaria, Quezon, and Davao.
According to Hidalgo, the Candelaria factory would produce heavy sections with a rolling capacity of 750,000 metric tons (MT), such as H-beams and I-beams, and the Davao Meltshop will produce 500,000 MT of billets, which are semi-finished materials required in the production of steel.
With operations anticipated to begin in 2027, the two Concepcion manufacturing lines will generate 500,000 MT of wire rod and an additional 1.2 million MT of rebar for SteelAsia.
Reaching self-sufficiency
Hidalgo clarified the SteelAsia presentation, which states that with SteelAsia's growth and possible international investments, the Philippine steel sector may become 70% self-sufficient in as short as four years.
The steel company's four-year development strategy said that in order to roll in the midstream, money would need to be invested in wire rods, sections, and rebars/angles, as well as upstream steelmaking, namely in goods derived from scrap.
To be 70 percent self-sufficient in downstream fabrication and cold processes such as springs, cables, tools, tire cord, machinery, defense equipment, automotive, pipes, roofing, and appliances, the country must be able to produce downstream products such as sections and wire rod, plate, and hot rolled coil, according to the company.
According to Hidalgo, imports account for 92% of the nation's roofing needs. Outsourcing is used for steel cables, pipes, gas cylinders, appliance bodies, and even smaller items like spoons and forks.
