The Philippines is set to establish its first manufacturing facility for medium steel sections, which it sources from other countries, after the Board of Investments (BOI) approved a P19.82-billion SteelAsia project in Lemery, Batangas.
The 72-hectare facility of SteelAsia Lemery Works Inc. in Barangay Mataas na Bayan will have an annual capacity of 500,000 metric tons and is targeted to begin commercial operations in January 2027.
Once operational, the plant will produce H-beams, I-beams, C-channels, and equal and unequal angle sections used in buildings, bridges, power plants, industrial facilities and other infrastructure projects.
The project is the first High-Value Domestic Market Enterprise registered under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act, or CREATE MORE, according to the BOI.
It was approved by the Fiscal Incentives Review Board (FIRB) under Tier II of the Strategic Investment Priority Plan, covering investments that address gaps in industrial value chains.
‘This is the kind of investment we want to encourage-one that helps us strengthen an industry that is critical to our infrastructure ambitions and long-term economic development,’ FIRB Chair and Finance Secretary Frederick D. Go said.
The facility is expected to directly employ 656 workers by its third year of operations and generate an estimated P107.4 billion in sales during its first five years.
Government estimates also project the project to contribute P45.58 billion in additional economic output, generate P23.63 billion in household income and support about 102,029 jobs across the economy.
SteelAsia Chairman and CEO Benjamin O. Yao said the section mill project would help address the country’s dependence on imported structural steel.
‘As we accept this incentive package, we look forward to serving the needs of the Philippine market, start enabling downstream SMEs, and start saving billions of dollars through import substitution, reducing our huge trade deficit,’ Yao said.
The facility will use electric arc furnace steelmaking technology incorporating CONSTEEL Evolution technology developed by Italy-based Tenova. SteelAsia said the plant will run on renewable electricity and use locally sourced recyclable steel scrap. It will also employ wastewater treatment systems designed to recycle water and prevent wastewater discharge.
BOI said that the project is aligned with the Philippine Iron and Steel Decarbonization Roadmap, which seeks to promote more resource-efficient and lower-carbon steel production.