Accutech Steel and Service Center Inc. introduces a new production line dedicated to designing and manufacturing steel frame modules or panels from slit rolls of galvanized cold form steel. (Photo from BOI)
The Board of Investments (BOI) on Wednesday said it has given the nod for the registration of the P125 million steel production facility in Taguig of local firm Accutech Steel and Service Center, Inc. (ASSCI).
The Department of Trade and Industry’s (DTI) lead investment promotion agency said that the facility qualified for the tier III incentives under the government’s Strategic Investment Priority Plan (SIPP), noting that its activities fall under the “highly technical manufacturing and production of innovative products” category.
READ: BOI-approved investments as of May hit P640B, up 14%
“This project heralds a revolutionary chapter in our construction industry, showcasing cutting-edge innovations,” Trade Secretary and BOI chairman Alfredo Pascual said in a statement.
“The green light for this endeavor underscores our relentless dedication to driving the construction sector’s growth and dynamism,” he added.
With an investment of P125 million, the BOI said that the project introduces a new production line dedicated to designing and manufacturing steel frame modules or panels from slit rolls of galvanized cold form steel (CFS), which is more commonly referred to as light gauge steel (LGS).
The BOI added that Accutech’s project stands out as highly technical, utilizing computer-aided and controlled processes for project management, structural design, and engineering.
The steel frame modules produced by the Philippine-owned company are intended for structural building system applications, including for houses, mid-rise buildings, factory warehouses, and a variety of other residential, commercial, industrial, utility, artistic, and architectural structures, said the BOI.
Incentives
Under the SIPP’s tier 3 incentives, Accutech was made eligible to income tax holidays for a period of six years, and duty exemption on importation of capital equipment, raw materials, spare parts and accessories for a maximum of twelve years.
It will also be able to avail for 5 years enhanced deductions, which are taken from gross income before the regular corporate income tax rate is applied.
The enhanced deductions include a 50 percent additional deduction on labor expenses, 100 percent deduction on research and development, and a 100 percent deduction on training expenses given to Filipino employees.
Also included are the 50 percent deduction on domestic input expense, a 50 percent deduction on power expense, and a deduction for reinvestment allowance, among others.
Jan to May investments
The BOI approved the registration of P640.22 billion worth of investments during the first five months of the year, most of which are business ventures in the renewable energy sector.
The amount listed from January to May showed a 14 percent increase when compared to the P562.90 billion reported in the same period last year.
READ: BOI targets P1.1-trillion investment approvals in 2024
For the month of May alone, the BOI registered P27.41 billion worth of investments, the highest monthly record so far this year.
The BOI is targeting to approve at least P1.1 trillion worth of investments this year, expecting that most of the projects will still be in the renewable energy sector as it was in 2023.