- Project seen feeding country's infrastructure drive and 'spawning new industries'
According to Nikkei Asia article published on January 26, 2023, SteelAsia Manufacturing will partner with China Baowu Steel Group to build a 108 billion Philippine peso ($1.98 billion) facility in the Philippines as the country revs up infrastructure spending.
SteelAsia, the country's top steelmaker, and Baowu, the world's largest, will select a location as soon as February for the plant. It will produce 3 million tonnes of molten steel annually to be used for finished steel products, the Philippine company said.
A deal for the project was signed during Philippine President Ferdinand Marcos Jr.'s trip to China early this month, according to SteelAsia. Details such as the investment ratio and construction timeline have yet to be announced.
The Marcos administration is keeping former President Rodrigo Duterte's massive infrastructure build-up going, and robust demand for construction materials is expected to support SteelAsia's capacity expansion.
The Philippines lags behind other big Southeast Asian economies in development of the manufacturing sector. The plant will give the country a much-needed lift, said Benjamin Yao, SteelAsia's chairman and CEO.
"This project will spawn new industries and wean the country from its perennial dependence on imports," Yao said, adding the project will create about 2,000 jobs.
The company also anticipates demand from the auto and shipbuilding industries.
SteelAsia, which operates six plants in the Philippines, is slated to open a seventh in Cebu province this year. The new plant is expected to boost the company's output by 50% to 3 million tonnes of steel annually.
