The SteelAsia Group and other local steel mills are expanding their capacity to support the growing construction and infrastructure sector with a projected combined capacity of over 11 million metric tons by 2025.
Philippine Iron and Steel Institute president Roberto Cola said major players were seriously expanding capacities while new players committed to increase investments.
“SteelAsia expansion will address the industry needs for rebar, wire rods, small and medium sections and steel plates. The total production capacity for all these finished steel products will total around 11 million tons including [those of] other companies. This capacity is enough to satisfy demand of these steel products until 2025,” Cola said Wednesday.
Steel Asia announced the biggest investment of P5.5 billion for the construction of three steel plants to support the local production of reinforcing bars, steel plates, section bars and wire rod.
Other players such as Chinese miner Nicua Mining Corp. also announced its intention to diversify into steel manufacturing with $250-million mill in Leyte while Capitol Steel Corp., Pag-Asa Steel Works Inc. and other smaller players would pour in a total of $250 million.
SteelAsia said it settled its P5.45-billion financial obligations for the Davao, Batangas and Cebu mills last year. SteelAsia president Ben Yao said the three mills were mothballed assets that were rehabilitated, modernized and upgraded.
“In the last 10 years, demand for steel products was strong and we responded by building more mills with the best technologies available. Our output increased tenfold during this period, giving us the resources to pay our obligations on time,” he said.
