The Board of Investments (BOI) approved SteelAsia applications for tax incentives.
The first of the separate applications was for the expansion of capacity of SteelAsia’s Calaca Works to 475,000 tons per year. Its highest attained capacity prior to the application was 398,000 tons. The expansion includes the installation of additional and upgrades of both mechanical and electrical equipment, as well as automation upgrades.
The second was for planned 1,200,000 ton per year rebar mill in Plaridel Bulacan. The technology of the project is supplied by the leading steel equipment manufacturer, Daniel of Italy. The mill will be the most modern rebar mill in the world and among the largest as well. The mill is intended for the needs of backlogged sectors of the nearby regions; infrastructure, power, BPO office space and housing.
The steel industry is a priority sector under the law (RA 7103: Iron and Steel Industry Act), and under the BOI’s Investment Priority Program granting tax incentives. The incentives include an income tax holiday in the initial years of operation and duty free importation of equipment for the project.