SteelAsia Manufacturing Corp. said it is investing P30 billion in a new plant in Candelaria, Quezon, to produce heavy structural steel products currently sourced entirely from imports.
In a statement on Wednesday, Jan. 22, the steel manufacturer said the plant, expected to begin commercial operations by 2027, is projected to save the country $1.2 billion annually by reducing reliance on imports.
"We will create around 7,000 jobs instead of giving jobs to China, Vietnam, Thailand, Korea and Japan, our major suppliers," Ben Yao, SteelAsia, chairman and chief executive officer, said.
"Our carbon footprint will also be 90 percent lower than the traditional steelmaking process because we use recycled scrap metal and employ electric arc furnace technology,” headded.
The plant will utilize the latest European steel technology to produce over one million tons of structural steel, including H beams, I beams, angles, channels, sheet piles, plates, and other heavy profiles.
Yao added that the Candelaria plant will significantly reduce delivery lead times for projects from 3-4 months for imports to 1-2 weeks.
"This is a game changer initially for the construction and infrastructure sector since this means quicker project completion and lower costs," he said.
SteelAsia has awarded the Engineering, Procurement, and Construction Management (EPCM) contract for the plant to MCC Huatian Engineering & Technology Co., Ltd., a global leader in steel plant construction with over 230 projects in 14 countries.
Yao noted the importance of technology and expertise in steel manufacturing, emphasizing the company's commitment to producing high-quality steel products.