The Philippines’ largest steel producer SteelAsia Manufacturing Corp. (SteelAsia), has stated in an interview with the Philippine News Agency (PNA) that the company plans to invest an additional PHP 25 billion ($491.77 million) to build two more plants amid an aggressive expansion drive to meet market demand. The company is also planning to go public within two years.
SteelAsia chairman and chief executive officer Benjamin Yao said that they are waiting for permits to build a steelmaking facility in Concepcion, Tarlac, at a cost of PHP 20 billion ($393.4 million) with an annual capacity of 1.7 million mt for rebar and wire rod. The remaining PHP 5 billion ($98.35 million) will go to the construction of a rebar plant in Iloilo City.
The company has already ongoing expansion plans to build new facilities in Compostela, Cebu; Lemery, Batangas; and Candelaria, Quezon; with combined investments of PHP 36 billion ($708.23 million).
Meanwhile, SteelAsia’s outlook for 2020 and over the next five to 10 years is strong. “We are capacity constrained today. On a per capita basis compared to our neighboring countries, we are much lower and we are filling it right now. Lots of demand is coming in; we haven’t seen the real Build, Build, Build (infrastructure program), which we believe will start to kick-in next year,” Mr. Yao told PNA.
Back in April this year, the Philippine Iron and Steel Institute anticipated a five to six percent increase in the country’s steel consumption to a record 11.1 million mt in 2019. The Philippines’ steel consumption increased by nine percent in 2018 to 10.5 million mt.
