STEELASIA Manufacturing Corp. reported its output of steel bars jumped 11% year-on-year to over a million metric tons (MT) in the first half of 2018, citing strong demand from the public and private sectors.
In a statement over the weekend, SteelAsia said its six operating plants produced 1.02 million MT of reinforcing steel bars or rebars, up 11% from 925,503 MT recorded in the same period last year.
“We are fortunate to be able to ride on the current infrastructure boom. With sustained economic growth, we believe that SteelAsia along with the whole steel industry will also continue to grow and serve more customers,” said SteelAsia Chairman and CEO Benjamin O. Yao in the statement.
Of the total production volume during the January to June period, the biggest contribution came from SteelAsia’s steel mill in Meycauayan, Bulacan with 271,329 MT. The Meycauayan facility serves Metro Manila, central Luzon and northern Luzon.
This was followed by Davao Works which produced 257,032 MT, while Calaca Works in Batangas produced 255,147 MT.
SteelAsia also has a second mill in Meycauayan, Bulacan; Cebu Works in Carcar, which serves the Visayas region, and second mill in Mindanao located in San Martin Villanueva, Misamis Oriental.
In the next five years, SteelAsia will be investing P100 billion to more than double its capacity through more upstream facilities and establish three new integrated steelmaking plant.
The company has started construction of a seventh plant in Compostela, Cebu to serve the increasing demand of construction steel in the Visayas region. The facility, which will primarily manufacture wire rods, will have a capacity of 800,000 MT.
“We are deliberately bringing our plants closer to our customers. That way, we can give our customers the best price and service with just-in-time delivery and at the same time, help create more jobs for our people in the countryside,” Mr. Yao said.
Mr. Yao said the company hopes to break ground for two more plants this year — a wire rod plant with a capacity of 1.2 million tons in Concepcion, Tarlac, and a plant that can produce 500,000 tons of steel sections in Lemery, Batangas.
“These investments are focused on basic sectors to substitute imports and create linkages to support infrastructure development and downstream industries,” he added.
SteelAsia estimates local demand for rebars will hit 4.5 million tons by 2021. As for wire rods and sections, demand is expected to reach about 600,000 tons and 700,000 tons, respectively.
The completion of its five-year investment plan will bring SteelAsia’s capacity of finished steel products to 7 million tons and steel-making products at 4.3 million tons. — Janina C. Lim