Steel Asia Cebu plant to start operations in June

SteelAsia Manufacturing Corp. said its plant, which will produce the first reinforcing steel bars in Cebu, could start commercial operations in June.

The company issued a statement after the plant produced its first steel reinforcing bars as it entered the final phase of commissioning.

SteelAsia said the steel plant in Compostela, Cebu, will produce about 1 million tons of “high-strength” rebar per year thanks to the “latest available” technology it uses.

SteelAsia said that with this additional capacity, it now has six more plants located across the country. Moreover, the company said it can now produce 3 million tons per year. As such, the steelmaker stated that this makes SteelAsia “the largest rebar manufacturer in Southeast Asia”.

The company said in a statement last Friday that the funding for the project was received from the Development Bank of the Philippines, which provided long-term loans worth 5.7 billion pesos.

According to SteelAsia, it signed a loan agreement with DBP in June 2020. It says construction was completed in 30 months despite the global pandemic and supply chain disruptions.

Meanwhile, the company said it was investing “significant funds” in manufacturing facilities to boost local capacity and make the Philippines “less dependent on imports.”

“This is another important step for our country to become self-sufficient in our steel needs, a goal that SteelAsia is committed to pursuing. Every country in the region is self-sufficient, and the Philippines should not be left behind and dependent only on imports,” said Benjamin Yao, Chairman and CEO of SteelAsia.

The Compostela plant will also produce welded mesh, the first of its kind in the Visayas and Mindanao, the company said.

“This will ensure an adequate supply of high-quality and cost-effective steel for housing and infrastructure development,” Yao said.

He also noted that the plant will enhance SteelAsia’s ability to serve different regions, giving builders the benefits of localized product availability, reduced logistics costs and faster response times.

The Compostela plant will create 500 direct and 2,500 indirect jobs once it reaches full capacity, according to the company.

SteelAsia said Yao inspected the plant and met with Italian engineers from Danieli & CSpA, the plant’s machinery and equipment supplier.

Image credits: www.steelasia.com