Aboitiz Power Corp. plans to supply electricity to the planned $4.4-billion integrated iron and steel project of HBIS Group Co. Ltd. of China, Huili Investment Fund Management Co. Ltd. and Steel Asia Manufacturing Corp. in Misamis Oriental province.
“These things build cities…An integrated steel mill that have economies of scale would be consuming anywhere from 300 megawatts to 600 MW. It’s a game changer if that’s real,” Aboitiz Power chief operating officer Manny Rubio said.
Aboitiz Power is one of the country’s biggest power producers. The company has a portfolio of investments in power generation, distribution and retail electricity services. It owns hydroelectric, geothermal and solar power generation facilities and coal-fired power plants that can supply the power requirements of the steel project.
“It is an opportunity to supply, for everyone, it’s a game changer if that’s going to happen. The Philippines needs that,” he said.
Rubio said new power projects for completion this year would drive Aboitiz Power’s future growth. He said these would include the 600-MW GN Power Dinginin project, 300-MW plant of Therma Visayas Inc. and 68-MW Manolo Fortich hydroelectric power plant.
Rubio said the company also continued to look at overseas expansion.
“We are always on the lookout. We’ve always said we’re always exploring in Indonesia, Vietnam and Myanmar and we’ve been talking about it for quite some time and those will bear fruit one way or the other,” the executive said.
HBIS, Huili Investment Fund, Steel Asia and Phividec Industrial Authority, earlier signed an agreement to build an integrated iron and steel project in Misamis Oriental province.
Huili Investment Fund will fund the first phase of the project costing $3 billion and involving the establishment of two blast furnace plants,
The first phase will cover the production of 4.5 million tons of hot rolled coil and 600,000 tons of slabs.
