SteelAsia Lemery Works Inc., a subsidiary of SteelAsia Manufacturing Corp., has been awarded Green Lane Certificate of Endorsement, ensuring that its P19.3 billion steel mill project in Batangas will start operation in July next year employing 600 individuals. 

The Department of Trade and Industry  (DTI) through the Board of Investments One-Stop Action Center for Strategic Investments (OSAC-SI) said it has awarded the company with Green Lane Certificate of Endorsement on Sept. 15 to facilitate the processing of government requirements for the steel project. 

With an initial investment cost of ₱19.3 billion, SteeAsia's 500,000 MT Section mill project becomes the country’s first steel production line project. Its 600 personnel will come from the local town and nearby areas.

DTI said that the recently-signed Executive Order No. 18., Green Lane endorsement can expedite the processing and issuance of permits and licenses for projects identified as strategic investments. 

SteelAsia Chairman and CEO Benjamin Yao said, “Green Lane will be very helpful to the company. We consider it as a “win” for the country and we will convert this privilege into action.”

The said project includes the greenfield design, construction, and commissioning of the Philippines’ first state-of-the-art hot-rolling production line with an upstream integrated recycling-based steelmaking. 

Local steel manufacturing is deemed insufficient to address the growing demand for the product, especially with the increasing consumption of sections from both infrastructure projects and private developments.

With this, Yao commits to support the goals of the nation of developing more infrastructure projects.

Further, SteelAsia's project has an import-substitution strategy targeting the large and fast-growing domestic market for the sale of the mills’ output.

The plant will manufacture using electric arc furnace (EAF) technology to refine steel which will be used to hot-roll steel sections such as H-beams, I-beams, I-channels, and unequal leg angle bars. 

With the presence of local manufacturers, BOI said this reduce building costs, speed up the construction process, and promote further expansion in domestic construction. It will also create supporting sectors including built-up steel structures, structural steel services, and engineering. 

In addition, BOI Governor Marjorie Ramos-Samaniego said that in streamlining the processes, BOI will partner with the Department of Information and Communications Technology (DICT) to come up with an online portal for Green Lane's facilitation of strategic investments. 

Due to the lack of steel manufacturing players in the country, the Philippines ranked 20th among the top importers of steel globally.

In 2022 alone, the Philippines imported about $5.23 billion worth of steel, $2.18 billion of which was imported from China. (Ma. Joselie C. Garcia)