MANILA, Philippines — Consunji-led DMCI Holdings Inc. confirmed that it has shut down its P900-million steel fabrication plant in Batangas province after seven years, as the lingering impact of the COVID-19 pandemic pulled down demand.
In a statement on Thursday, DM Consunji Inc., the engineering and construction unit of DMCI Holdings, said operations were discontinued in October last year due to “a prolonged decline in demand and unsustainable operational costs.”
“This decision was the result of an extensive evaluation of market conditions and a rigorous assessment of all viable alternatives,” the subsidiary said.
In a disclosure to the Philippine Stock Exchange, the parent firm said the factory’s shutdown would not affect the operational capacity of its construction business, as they could reallocate the steel fabrication work to other business units.
The fabrication plant in Calaca City was completed in 2016, and was then identified as the country’s first new steel plant in nearly four decades.
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Before that, the last known high-capacity steel fabrication plant in the country was built all the way back in the 1980s.
The plant was said to have produced up to 3,000 tons of fabricated steel a month, and had the capacity to fabricate heavy steel sections for various infrastructure, including power plants.
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Steel is widely used across various industries, as it is regarded as among the most important and adaptable materials for infrastructure development.
Data from the United Nations’ trade database show that in 2022, the Philippines imported $425.6 million worth of steel, equivalent to 522.77 million kilograms.
That same year, the country exported $1.87 million worth of steel, which translates to 120,307 kg. —Meg J. Adonis