SteelAsia has begun the commissioning process of two mills in Mindanao. Located in Davao City and in Phividec, Misamis Oriental, the mills once fully operational will be the only rebar mills in Mindanao.
The process which takes three to six months, once completed will add another 700,000 tons to SteelAsia’s operating annual capacity of 1.3 million tons. This will make SteelAsia as the largest rebar manufacturer in South East Asia at 2.0 million tons before the end of 2014.
The mill in Misamis Oriental is a re-commissioning of a moth-balled mill. SteelAsia, rehabilitated, upgraded and expanded the facility to a 200,000 ton per year rebar mill.
The Davao mill is a new 500,000 ton per year rebar mill of Italian design and supply. It is the largest and most modern rebar mill in the Philippines to date. The USD 70 million project featured Italy’s largest bank Unicredit as the financing agent, funding from Standard Chartered Bank of London, cover from Italy’s Export Credit Agency, Servizi Assicurativi del Commercio Estero (SACE) and a Philippine sovereign guarantee. The project is also BOI registered.
The two mills will address Mindanao growth especially in housing, infrastructure and power sector developments.