President Ferdinand Marcos Jr. on Tuesday said the inauguration of SteelAsia Manufacturing Corporation's Compostela Works in Cebu marks a significant step towards a more robust domestic steel industry.

In his speech during the inauguration, Marcos noted that SteelAsia's state-of-the-art facility boasts an annual production capacity of one million tons of rebar, making it the Philippines' largest steel plant.

"This is just one of SteelAsia's projects over the next three years aimed at developing a strong Philippine steel industry that no longer relies on importation to meet our steel requirements," Marcos said.

Marcos said the project is in alignment with the recently signed Tatak Pinoy Law and the administration's "Build Better More" program.

Marcos commended SteelAsia for creating employment opportunities, with the Compostela Works employing 300 personnel and generating an additional 1,500 jobs in the local community.

The factory is ready to satisfy the rebar requirements for several infrastructure projects, including bridges, highways, airports, seaports, flood control systems, and other major Visayas and Mindanao-based building projects. It will also help residential building, especially in light of shortages of homes.

Marcos also acknowledged SteelAsia's longstanding contribution to the nation's infrastructure and development, with over 70 percent of steel used in the country coming from the company.

"With SteelAsia's increased manufacturing capacity of three million tons annually, you will also solidify our position in the global market," President Marcos said.

The facility was financed by a P5.7-billion Project Finance Loan from the Development Bank of the Philippines (DBP) in June 2020.

In the same speech, Marcos asked the government departments to develop a strategy to boost the steel sector of the nation and address problems hindering its expansion.

Citing that the Philippines is the only nation in the area without an integrated steel mill, Marcos told the Department of Trade and Industry (DTI) and Department of Energy (DOE) to help strengthen the nation's steel sector.

"I call on the Department of Trade and Industry, as lead, along with the Department of Energy and other agencies and stakeholders to resolve the industry's concern regarding high power and logistics cost which make up the bulk of its production plants inputs," Marcos said.

"So, I look forward to the formulation and submission of a concrete and feasible plan to improve our steel trade balance over the next years," Marcos added.

The President also asked the DTI to modernize the national iron and steel roadmap "to ensure its continuous stability and relevance among domestic and global challenges and trends."

He underscored that localizing the manufacturing of basic steel goods will help the Philippines diversify its steel sector and maintain its economic stability.

The Chief Executive further encouraged all interested parties to make more investments meant to lessen, if not completely solve the constrained raw material scenario.

He urged every interested party to cooperate with the government to close any last supply chain gaps in the steel sector.