Steel Asia Manufacturing Corp. has announced that it will set up the Philippines’ largest and ‘most modern’ steel mill to cater to the growing demand. The steelmaker has signed a P5.7bn ($117.6mn) loan deal to fund the construction of this rolling mill with the Development Bank of the Philippines (DBP).
Why the mill is being planned?
This mill will enable the Philippine producer to make wire rods in addition to reinforced steel bars which are being produced and supplied domestically. The Philippines currently does not have a wire rod production facility. Hence, it’s very difficult for small manufacturers to survive.
To lower the overall cost and modernize existing techniques, the steelmaker is likely to upgrade its facilities. The Philippines is one of the leading billet importers from China, India and Vietnam. This will also cater to different regions, giving builders the benefits of localized product availability, lower logistics cost and faster response time.
Benefits of the mill
The mill will be located in Barangay Población in Compostela in Cebu. The steel mill will have a production capacity of 800,000mt per year. This will also create employment opportunities in the sector severely hit by the pandemic with up to 500 direct and 2,500 indirect jobs, said a report.
Steel wire rods produced through this new rolling mill would be utilised in the manufacturing of nuts and bolts, steel mesh, welding rods, bearings, chains, fasteners, wires and nails. Steel Asia has six working facilities with three in Luzon, one in Cebu and two in Mindanao, supplying around the country 2mn mt of rebar annually.