P108-B plan: SteelAsia taps China giant

The facility will produce three million tons of liquid steel that can be converted into almost any finished steel product that can then feed and strengthen other industries

A P108-billion deal has been recently signed to set up an integrated steel plant deal. From left to right, are Department of Trade and Industry Shanghai Vice Consul Mario Tani, SteelAsia COO Andre Sy, Zhongnan Senior Vice President Li Huaidong, DTI Undersecretary for Industry Development and Trade Policy Ceferino Rodolfo, SteelAsia Chairman and CEO Benjamin Yao, and SteelAsia SVP Rafael Hidalgo. | Photograph courtesy of SteelAsia

SteelAsia Manufacturing Corp, the country’s largest operator of steel mills, is tapping China’s BaoSteel Group, which is the world’s top metal producer, to build a P108-billion integrated steel facility.

The deal was signed by SteelAsia chairman and CEO Benjamin Yao and Baowu Group Zhongnan Iron & Steel Co. Senior vice president Li Huaidong during President Ferdinand Marcos Jr.’s three-day state visit to China early in January.

The facility will produce three million tons of liquid steel that can be converted into almost any finished steel product that can then feed and strengthen other industries such as the construction sector, automobile industry, appliances and ship building.

New business to rise

“This project will spawn new industries and wean the country from its perennial dependence on imports. It will generate about 2,000 jobs, including for for professionals who in the past have had to work abroad and leave their families,” Yao said.

Baowu Group will be fielding a team next month to jointly explore with SteelAsia a possible suitable location for this project.

SteelAsia operates six manufacturing plants in Bulacan, Batangas, Cebu, Davao and Misamis Oriental. It is set to open it’s seventh plant this year in Compostela town in Cebu. This will increase its output from 2 million metric tons of steel annually to 3 million metric tons.


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