SteelAsia to spend P80 billion in next five years

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SteelAsia Manufacturing Corp. is spending P80 billion in the next five years to hike its capacity production of billets and rebars and eventually roll out the first local plant that will manufacture wire rods and sections — much needed products in establishing a steel industry.

The first phase of the plan includes the establishment of three integrated steel making products and hot rolling for rebar, wire-rod and sections.

The three plants include a a wire rod and rebar facility with an 800,000 capacity, a wire-rod producer with a capacity of 1.2 million tons and a plant that can produce 500,000 tons of sections to be built in Compostella, Cebu; Concepcion, Tarlac; and Lemery, Batangas, respectively, with the first eyed to be completed by 2019 and the latter two by 2020.

With this expansion plan, Steel Asia, the biggest rebar producer in the country, expects its output capacity of the product to 4.5 million tons of rebar, almost doubling the current capacity of 2.3 million tons which is produced in five of its six existing plants.

The firm said this is the first of the three phases to be part of its six-year plan. Completing all phases of the plan will bring the firm’s capacity of finished steel products to 7 million tons and steel-making products at 4.3 million tons. — Janina C. Lim