President Ferdinand Marcos, Jr., gracing the inauguration of Steel Asia’s Compostela Steel Works in Compostela, Cebu — the newest, largest and most modern steel mill in the country. “This momentous occasion marks a significant milestone for our nation’s steel industry and infrastructure development,” according to DTI Secretary and PEZA Board Chairman Alfredo Pascual who joined the President, SAP Secretary Frederick Go and Steel Asia’s Chairman Benjamin Yao for the inauguration and plant tour. Other government officials in attendance are Cebu Governor Gwendolyn Garcia, DBP Chairman Philip Lo, Cebu Provincial and Compostela LGU, DBP, Philguarantee Corp., PEZA, as well as select business partners, banks, traders and suppliers of Steel Asia (SA).
As the country’s leading provider of world-class steel products, SA operates 6 manufacturing facilities in Bulacan, Batangas, Cebu and Davao that directly employ 2,605 employees and produce a total of 3 million metric tons of finished steel products per year.
As a testament to the “Tibay ng Filipino” as its company slogan, SA put up a world-class steel mill in Compostela that utilizes state-of-the-art “Danieli equipment from Italy, the global industry leader in rebar rolling technology. This enables SA to process billets at a lot faster time, while minimizing CO2 emissions for better yields and higher productivity. Also, its longer horizontal mills capacitate SA to engage in the production of long products segment, particularly rebars of all sizes and with a commercial length of up to 12m to 18m. As Southeast Asia’s largest rebar manufacturer, SA has exported over 41,148 metric tons (since 2023) of high-strength 18m steel bars to Canada for its subway system.
This only proves that the Philippines can become a major steel producer for both domestic and export markets. With Philippines’ status as the 5th mineralized country in the world, the government can induce more investments into localization of processing of basic steel raw materials such as iron ores, coal and limestone towards the establishment of integrated steel mill that will allow the country to manufacture its own steel products.
Currently, 86% of the country’s steel needs are imported mostly from Vietnam, with SA only making reinforcement bars (rebars). SA’s upcoming facilities with capital investment of P65 billion will produce steel products that are not yet being manufactured in the country, such as H-beams, I-beams, wire rods, sheet piles, and billets.
DTI and PEZA can contribute a lot in the country’s attainment of self-sufficiency in our steel requirements by hosting integrated- and mini-steel manufacturing facilities in the ecozones. By providing for distributed utilities system, PEZA can allow for embedded power, water and gas providers to co-locate with process subcontractors to lower our production cost and make viable steel manufacturing in the country’s ecozones. With PEZA providing for the best location and business ecosystem for investors, we hope to host SA’s next big-ticket and most high-tech steel manufacturing facility in the ecozone.
As steel is often referred to as the backbone of vital infrastructure and modern industry, government is stepping up to boost local steel production in support of our massive infrastructure projects and growing manufacturing sector. It is a must that we strengthen as well the factories, refineries (esp. petrochemical), mines, and agribusiness, which are all critical elements of industrialization.
Under the Marcos administration, we can achieve a high-income growth, a higher value chain manufacturing, and provide quality jobs for Filipinos as we accelerate our industrialization and countryside development through the creation of more ecozones in rural and new growth areas.
I congratulate and continue to encourage the expansion of Steel Asia! Pursuant to the ‘Tatak Pinoy’ strategy, PEZA will fully support their efforts in increasing their capacity and creating products that we Filipinos can proudly call our own!
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