SteelAsia building P30 billion facility in Quezon

SteelAsia Manufacturing Corp., the country’s largest steel producer, is set to invest PHP30 billion in constructing a state-of-the-art steel facility in Candelaria, Quezon.

In a statement released Wednesday, SteelAsia announced that the new plant will serve as an import substitute for heavy structural steel products, which the Philippines currently sources from other countries. 

The facility will utilize cutting-edge European steel technology to produce over 1 million tons of heavy structural steel annually, including H beams, I beams, angles, channels, sheet piles, plates, and other heavy profiles.

The initiative is expected to save the Philippines USD1.2 billion annually by reducing dependence on imported steel products.

“We will create around 7,000 jobs locally, instead of outsourcing these opportunities to China, Vietnam, Thailand, Korea, and Japan—our current major suppliers,” said Benjamin Yao, chairman and chief executive officer of SteelAsia.

Yao added that the plant is slated to commence commercial operations by 2027, significantly improving delivery lead times from the current three to four months to just one to two weeks.

The new facility will also incorporate sustainable practices, with a carbon footprint 90 percent lower than traditional steelmaking methods. This will be achieved by using recycled scrap metal and electric arc furnace technology.

SteelAsia has awarded the Engineering, Procurement, and Construction Management contract for the project to MCC Huatian Engineering & Technology Co., Ltd., a global leader in steel plant construction. 

MCC Huatian has built over 230 steel plants with a combined capacity of more than 200 million tons across 14 countries.

“In steel manufacturing, we cannot compromise on technology and expertise because we are committed to producing the best steel products,” Yao emphasized.

This major investment underscores SteelAsia’s commitment to strengthening the local steel industry and supporting the country’s infrastructure development while promoting sustainability and reducing reliance on imports.