SteelAsia Manufacturing (SteelAsia), the country's leading steel company, will supply Ayala Land Inc.'s (ALI) construction arm Makati Development Corporation (MDC) with rebars made from recycled materials as part of the firms' sustainability initiatives.
Sustainability officers from ALI, MDC, and SteelAsia signed a memorandum of understanding (MOU) on Feb. 28 to formalize their partnership.
In a joint statement, the firms said they have found a "common ground to pursue a common goal: reduce and recycle waste to protect the environment and fight climate change."
"At the same time, this partnership will result in lower project costs, push industrialization, and save precious dollars. This is circular economy in action," they added.
Through the MOU, SteelAsia, who has already dabbled in steel-recycling, will provide the MDC with rebars made from scraps leftover in ALI projects.
According to ALI, the Philippines currently exports finished steel, but imports its scraps, which has yielded high import costs with an adverse effect to project costs.
To address this, SteelAsia has been developing its melt shop operations to replace imports. To date, it has six plants that supply rebars to local developers, exports to Canada, and has contributed to building critical infrastructure such as the Cordova Bridge in Cebu.
In addition, the MOU also seeks to reduce waste and the companies' carbon footprints since 50 percent of ALI's supply chain emissions are attributed to rebars.
Since 2017, ALI has committed to reaching carbon neutrality. In 2022, it finally set a net zero emissions goal by 2050.
Signing the agreement were MDC A+E Design & Sustainability Head Jeremy G. Acosta; Ayala Land Sustainability Head Anna M. Gonzales; Ayala Land Chief Sustainability Officer Robert S. Lao; SteelAsia President and COO Sean Andre Y. Sy, MDC CFO Jose C. Platero, Jr.; and SteelAsia Chief Sustainability Officer Stephen J. Araneta.