SteelAsia spending $1.40bln for new plants in Philippines

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SteelAsia Manufacturing Corp. is putting up five steel plants with a total cost of P82 billion in the next four years.

In a statement, SteelAsia said the five steel plants are being built to replace imports, as well help create jobs and contribute to the country's economic growth.

SteelAsia's upcoming plants include those in Lemery, Batangas (which costs P18 billion), Candelaria, Quezon (P30 billion) and Davao City (P8 billion).

These three plants are expected to be completed by 2026.

Meanwhile, two plants in Concepcion, Tarlac, which are projected to cost P26 billion, will be completed in 2027.

SteelAsia chairman and CEO Benjamin Yao said the new plants would produce new steel products that are currently being imported by the country.

In 2022, the country spent more than $3 billion to import products like wire rods, billets, sections and sheet piles.

Yao said the products to be made at SteelAsia's new plants would have applications in infrastructure and construction, as well as in various downstream steel-intensive manufacturing industries.

'We are building the mother industry for manufacturing. We are way behind our neighbors but we will catch up. And as we do so, our mills and steel products will create new manufacturing industries that will result in more jobs and higher skilled workers and economic growth, among others,' Yao said.

SteelAsia shared its expansion plans to President Marcos during the inauguration of the company's P10 billion plant in Compostela, Cebu earlier this month.

Marcos cited the need to revitalize the local steel industry and pledged government support for the company's expansion plans, with over 70 percent of all infrastructure, housing, power, industrial and other business developments in the country using SteelAsia rebar.

In the same event, the President directed the Department of Trade and Industry (DTI) to update the country's iron and steel roadmap to address issues affecting the industry's growth amid domestic and global challenges.

Marcos also directed the DTI, the Department of Energy and other agencies to resolve the steel industry's concerns like high power and logistics costs, which make up the bulk of production plants inputs.

As part of its strategy, SteelAsia has plants in Batangas, Bulacan, Davao and Cebu to cut transport costs and sell to customers at the same price across the country.