A CAVITE-BASED company’s P322.7-million steel plant received the go-ahead from the Board of Investments (BoI) to operate as a new producer of steel parts.
In a statement on Tuesday, the BoI said Portal Steels, Inc.’s project is qualified to receive incentives under the manufacturing activity of the Investments Priorities Plan (IPP).
According to the IPP 2017, manufacturing of industrial goods outside Metro Manila are qualified to register for tax incentives.
Portal Steels is expected to produce annually 48,000 metric tons (MT) of steel billets and 22,800 MT reinforcing bars or rebars in its facility in Hong Chang compound, Carmona, Cavite.
Half of the steel billets will be sold commercially for milling operations and the other half will be used for exports while rebars will be used for the local infrastructure industry, BoI said.
Portal Steels is allocating half of its billet production for commercial sale, while the rest will be used for its own integrated rolling mill operations.
On the other hand, its production of rebars will be mainly for the domestic demands of the infrastructure industry.
Commercial operations of the Carmona facility are expected to start in December with 75 employees.
“Steel companies stand to benefit in light of the government’s ‘build, build, build” strategy to usher the country in the “golden age of infrastructure” with infrastructure spending of up to 7% of the country’s Gross Domestic Product,” Trade Undersecretary and BoI Managing Head Ceferino S. Rodolfo was quoted as saying in a statement.
In a document released by the Philippine Iron and Steel Institute, the local industry plans to be a major producer for local use by 2030 by supplying 70% of tonnage for industrial usage. — Anna Gabriela A. Mogato