The local government unit (LGU) of Magalang town in Pampanga has suspended the operations of all steel plants in the municipality.
The municipal government made the move amid the ongoing investigation on the steel factory which was raided by the National Bureau of Investigation (NBI) and the Presidential Anti-Organized Crime Commission (PAOCC) on July 18, 2026.
The local government, under the leadership of Mayor Malu Paras Lacson, said it is fully cooperating with authorities investigating the operations of Chuangxing Steel Incorporated.
The raid uncovered more than ?3 billion worth of radioactive-bearing raw materials, substandard steel products, and contaminated production equipment.
Operatives of the NBI and the PAOCC arrested four company executives and rescued 400 workers who were allegedly exposed to hazardous industrial conditions.
PAOCC Executive Director Benjamin Acorda Jr., mentioned the cooperation of the local government during a press conference on July 28.
Acorda said the municipal government has been supporting the ongoing investigation.
“Nagtutulong-tulong naman… sumusuporta po ang local government ng Magalang. In fact, they were the ones who initiated our town hall meeting, para makita nila at malaman nila kung ano talaga yung problema sa dalawang aspeto. And of course, hindi rin nila kinakalimutan ang kanilang mga kababayan,” Acorda said.
He added that the local government initiated a town hall meeting that brought together concerned agencies and groups to understand the issues surrounding the steel plant's operations, including worker welfare and public safety.
Lacson issued an executive order directing the temporary suspension of the operation of induction furnaces and other metal melting facilities in all steel manufacturing plants in Magalang pending comprehensive environmental, health, safety, and regulatory compliance assessments.
Under the executive order, all steel manufacturing plants, metal processing facilities, and industrial establishments using induction furnaces or similar metal melting technologies are required to cease operations while inspections are conducted by the municipal government in coordination with national government agencies.
The order was issued pursuant to the Local Government Code and the municipal government's mandate to protect public health and safety, and environment.
An interagency task force, composed of the Department of Trade and Industry (DTI), the Department of Public Works and Highways (DPWH), and the local government, was organized to address the distribution of substandard steel products that may have reached construction projects in different parts of the country.
Investigators said many of the workers in the steel plants, recruited from the Visayas and Mindanao, were reportedly unaware of the potential radiological hazards inside the facility.
Authorities emphasized that, based on the documents gathered during the investigation, no political personalities have been implicated in the case.
