FINAL PHASE The Compostela mill will be the country’s largest, with an annual rebar production capacity of 800,000 tons. —PHOTO FROM STEELASIA WEBSITE
SteelAsia Manufacturing Corp., the Philippine’s largest steel producer, said over the weekend that it has produced its first steel bar in its Cebu steel mill as the facility entered the final phases of commissioning, with commercial operations seen starting next month.
The Taguig-based steel company said the manufacturing facility in Compostela, Cebu, will produce 1 million tons of high-strength rebars annually, adding it will be the country’s most efficient and environment-friendly facility with the use of the latest available technology in the steel industry.
“This is another major step for our country to be self-sufficient for our steel needs, a goal SteelAsia is committed to pursue. Every single country in the region is self-reliant and the Philippines should not be left behind to depend only on imports,” SteelAsia chair and CEO Benjamin Yao said.
The steel mill will also produce welded reinforcing mesh, which are commonly used in reinforcing concrete walls, columns or floors, at the first such facility in the Visayas and Mindanao.
“This will ensure adequate high-quality and economical steel supply for housing and infrastructure development,” Yao said further.
The SteelAsia executive said the steel mill, which is the company’s seventh plant, will expand their capacity to serve different regions, giving builders the benefits of localized product availability, lower logistics costs and faster response time.
The Development Bank of the Philippines (DBP) funded the project through a long-term loan agreement back in June of 2020 amounting to P5.7 billion.
SteelAsia said it took only 30 months to complete the facility, despite the challenges brought by the global outbreak of the coronavirus, as well as the supply chain disruptions caused by the health crisis.
Once the steel mill begins production, it will create 500 direct and 2,500 indirect jobs, according to SteelAsia.
The company has been investing heavily in manufacturing plants to ramp up local capacity, as part of its goals to make the Philippines less dependent on imports of steel products.
Earlier in January, SteelAsia entered into an agreement with the world’s largest steel producer, China’s BaoSteel Group, to build a P108-billion integrated steel facility in the Philippines. INQ