SteelAsia to respond to Southern Luzon economic development

05/28/2015: In an interview with Platts/Steel Business Briefing, an international publication and information provider for the steel industry, SteelAsia announced that it is planning to expand in the Southern Luzon region of the Philippines.


The company revealed that activities are underway to erect a new 500,000 ton per year steel rolling mill in Southern Luzon in anticipation of major construction activities in the area.  The Philippine government is planning massive infrastructure development that will unlock the potential of the area.  The expectation of the company is that the planned development will give birth to more and sustained construction development from various sectors including power, housing, tourism, industrial, retail and BPO offices. SteelAsia targets the new mill to be operational in 2018.

SteelAsia lowers the cost of steel by establishing manufacturing capability near regional economic growth areas in the Philippines.  This reduces the cost of freight for developers and other builders and unburdens country development of these costs.  SteelAsia’s “one-price policy” in all its mills allow customers to take full advantage of the cost savings created by the company’s dispersed locations. 

Another advantage is that new plants use modern technologies.  The cost of steel remains low due to manufacturing efficiencies. These new mills also have sustainable technologies built into them, resulting in environmentally friendly and occupationally safe operations.

The company already has two manufacturing operations in Luzon; 550,000 ton per year rebar works in Meycauayan Bulacan and a 500,000 ton per year rebar works in Calaca Batangas.  A third works already underway- a 1.2 million ton per year rebar works set to operate in 2016 in Plaridel Bulacan.  In the Visayas and Mindanao regions, the company operates a 300,000 ton per year rebar works in Carcar Cebu, a 500,000 ton per year rebar works in Davao City and a 200,000 ton per year rebar works in Phividec Misamis Oriental.  The company also has an ongoing new 800,000 ton per year project, also located in Cebu.

For the latest expansion, technical studies are underway at the identified site.  When operational, SteelAsia will have a total manufacturing capacity of 4.45 million tons per year.

The company’s priority was to serve the fast growing rebar demand which it estimates will grow by 40% this 2015. SteelAsia is investing all its energies in ensuring that there is adequate supply of rebar for our country's fast growth.

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