New steel mill aims 1M tons of rebar production in PH

New steel mill aims 1M tons of rebar production in PH
SPEECH. The video of President Ferdinand Marcos Jr. is projected on a giant screen as he delivers a speech after leading the opening ceremony of the newest plant of SteelAsia Manufacturing Corp. in Compostela, northern Cebu on Tuesday, July 9, 2024. cherry ann virador

A Steel mill of the SteelAsia Manufacturing Corp. (SAMC) in Compostela, northern Cebu is poised to supply rebar for crucial infrastructure projects in the Visayas and Mindanao, including bridges, roads, airports seaports and flood control systems.

President Ferdinand Marcos Jr. led the opening ceremony of SAMC’s newest plant on Tuesday, July 9, 2024.

“Steel is the back hope of many industries. Many industries depend on still on their further development”, Marcos said in his speech.

“Once this Compostela Works becomes fully operational, it will have an annual production capacity of one million tons of rebars, making it the country’s largest steel plant,” he added.

The facility features cutting-edge technology from global steel manufacturing leaders Danieli of Italy and Fives of France. Its development was funded by a P5.7-billion Project Finance Loan from the Development Bank of the Philippines in June 2020.

Currently, the steel mill employs over 300 people.

The Compostela Works’ output will also support residential construction.

The construction of the steel mill was funded by a loan from the Development Bank of the Philippines. The project aligns with the Marcos administration’s prioritization of investment in the steel industry.

The mill’s 10-megawatt energy requirement is supplied by geothermal renewable energy from First Gen, addressing the global trend to decarbonize the steel industry.

SteelAsia, a 59-year-old Filipino-owned company, operates six plants across the Philippines, employing over 3,000 personnel and indirectly supporting an additional 15,000 jobs. The company supplies approximately 80 percent of the steel needed for major construction projects in the country.

The Compostela Works is part of a P80 billion four-year pipeline aimed at developing the Philippine steel industry. Future projects include mills to produce import-substituting products, enhancing the country’s steel security and self-reliance.

Andre Sy, president of SAMC, highlighted the company’s commitment to sustainability.

“Our future projects will include Electric Arc Furnaces, which produce 300 kilos of CO2 (carbon dioxide) per ton of steel, as opposed to 2,300 kilos from blast furnaces,” he said. / CAV

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