The Board of Investments has endorsed the P19.3-billion Batangas steel mill project of SteelAsia Lemery Works Inc. in Lemery, Batangas to the green lane to expedite the processing and issuance of permits and licenses as a strategic investment.
In a statement on Thursday, the BoI said it endorsed the 500,000 metric tons, or MT, section mill project, through Executive Order 18 for green lane priority.
The project is scheduled to start its operation in July 2024, employing 600 personnel and workers from the local town and nearby areas.
BoI Governor Marjorie Ramos-Samaniego with Executive Director Bobby Fondevilla and Director Ernesto delos Reyes Jr. led the awarding of the Green Lane Certificate of Endorsement to the officials of SteelAsia on 15 September 2023.
Ramos-Samaniego added that through the faster process, BoI, in collaboration with the Department of Information and Communications Technology, will come up with an online portal for Green Lane's facilitation of strategic investments.
The project is the greenfield design, erection, and commissioning of the Philippines' first sections of production, a state-of-the-art hot-rolling production line with an upstream integrated recycling-based steelmaking.
The Philippines ranked 20th among top steel importers globally, due to the lack of steel manufacturers.
Imports from China
In 2022 alone, the Philippines imported about $5.23 billion worth of steel, $2.18 billion of which was imported from China.
Local steel manufacturing is deemed insufficient to address the growing demand for the product, especially with the increasing consumption of sections from both infrastructure projects and private developments. "Green Lane will be very helpful to the company. We consider it as a "win" for the country and we will convert this privilege into action," said Benjamin Yao, chairperson and CEO of SteelAsia, noting that his company commits to supporting the goals of the nation of developing more infrastructure projects.
SteelAsia's project has an import-substitution strategy targeting the large and fast-growing domestic market for the sale of the mills' output. The plant will manufacture using electric arc furnace technology to refine steel which will be used to hot-roll steel sections such as H-beams, I-beams, I-channels, and unequal leg angle bars.
The presence of local manufacturers aims to lower the cost of construction, shorten construction periods, and further spur growth in domestic construction. It will also give rise to ancillary industries, such as structural steel services including design, engineering, and built-up steel structures.