STEELASIA Manufacturing Corp. said it entered into an agreement with a Chinese steelmaker to construct a P108-billion integrated steel facility at a location yet to be decided.
In a statement over the weekend, SteelAsia said that the facility will produce three million tons of liquid steel for construction, automobile, appliance, and shipbuilding applications.
The deal between SteelAsia and Baowu Group was a product of the three-day visit of President Ferdinand R. Marcos, Jr. to China in early January.
SteelAsia Chairman and Chief Executive Officer Benjamin O. Yao and Baowu Group Zhongnan Iron and Steel Co. Senior Vice-President Li Huaidong signed the deal.
Baowu was formed from the merger of the BaoSteel Group and Wuhan Iron and Steel in 2016.
“This project will spawn new industries and wean the country from its perennial dependence on imports. It will generate about 2,000 jobs, including for professionals who in the past have had to work abroad and leave their families,” Mr. Yao said.
Baowu will send a team to the Philippines next month to jointly explore with SteelAsia possible locations for the plant.
SteelAsia operates six manufacturing plants in five locations: Bulacan, Batangas, Cebu, Davao, and Misamis Oriental.
The company is scheduled to open a seventh plant this year, in Compostela, Cebu. The new plant will increase its annual capacity to 3 million metric tons (MT) from 2 million MT. — Revin Mikhael D. Ochave