Steel manufacturers from China, Taiwan, Korea and Japan are keen on investing in and setting up shop in the Philippines to cater to the rising domestic demand for steel products.
“The industry has seen over the last two years a remarkable growth—a 50-percent increase in demand for steel products and many companies are expecting the strong demand for steel will remain in the next few years. However, we still have to assess that, if the demand will require additional capacity,” said Trade Undersecretary Adrian S. Cristobal Jr.
This is why, Cristobal said, there was a strong interest in the industry from many Asian companies, which had been inquiring about the steel sector since early last year.
There were queries from prospective investors about the mothballed steel manufacturing facility of Global Steel Philippines Inc. in Iligan City, he said. According to Cristobal, some of these interested companies are already in the advanced stages of their due diligence, while the others are still studying the market. These prospective investors are considering producing hot rolled coils and cold rolled coils and reviving the production of flat steel, he said.
The decision on whether to invest in a brand-new manufacturing facility will depend on the domestic market’s need for additional capacity, the viability of the project and the various policy interventions that the government may come up with to create a more conducive business environment.
On another development, the Board of Investments on Thursday opened for public scrutiny the proposed roadmaps for the housing, cement, and iron and steel industries.
Such roadmaps will help the government in identifying critical supply chain gaps that will move industries up the value chain or allow deeper participation in the global supply chain.
The housing roadmap, spearheaded by the Subdivision and Housing Developers Association Inc. (SHDA) targets to increase housing production by 12 percent yearly; implement a comprehensive government housing subsidy program for target segments to enhance affordability; generate and mobilize funds for end-user financing, and improve housing regulatory environment. Amy R. Remo