Steel Asia is investing P6 billion in what will become the country’s largest steel mill in Plaridel, Bulacan, a move that will help address the growing steel requirements of the domestic market and generate nearly 3,000 direct and indirect jobs in the country.
According to the country’s largest steel producer, the Plaridel plant will have a production capacity of 1.2 million tons once completed by 2017.
This production plant will add to the company’s six existing steel mills, of which two are located in Bulacan, and one each in Cagayan de Oro, Davao, Cebu and Batangas.
“(The Plaridel steel plant) will be among the most modern in the world given that it will use the latest available technology that allows production efficiency and environmental protection at the same time,” said SteelAsia vice president Roberto Cola in a statement.
Steel Asia said it had secured the support of the community for the construction of the Plaridel facility, including the 5,000-strong federation of tricycle associations in Plaridel. It said it had been conducting consultations with community members to explain the technical and environmental aspects of the plant, and its benefits to the community and its environs.
“Being open and transparent with the community was key to the support we are getting for our project. We even brought some members of the Plaridel community to our newly opened Davao plant for them to see and appreciate that we are real partners in progress and we care for the environment as we go about our business,” Cola said.
According to Cola, the Plaridel steel plant will serve the Luzon market. This means deliveries will soon be quicker as their trucks will no longer have to ply Edsa and contribute to the traffic situation in Metro Manila’s busiest thoroughfare. As the truck turnaround time is also seen to improve significantly, the company expects to cut the diesel consumption of its fleet, further reducing Steel Asia’s carbon footprint.
The Davao plant, which was inaugurated in December 2014, has a production capacity of 500,000 metric tons and is expected to generate about 2,000 direct and indirect jobs.
Both the Davao and Plaridel plants of SteelAsia are designed with the latest technology from Italy, and will rely on rain water for its operations using huge reservoirs during the rainy season.
Both mills will likewise feature zero-wastewater systems that treat and recycle all water back into the manufacturing line, Cola added.
The construction of the new facility is expected to help the country meet the growing requirements of the local market, and help avert a “crisis” that the steel industry may face in the long run.
It is expected that local steel consumption will spike to 20 million metric tons by 2030, from only 6.58 million MT as of the end of 2013.
Industry experts earlier stressed the need to have more investments in the steel industry but the growth of this sector has been hampered largely by the high cost of electricity, technical smuggling, outdated facilities and tariff distortions on the importation of steel products. Amy R. Remo