SteelAsia Manufacturing Corp., the country’s largest steel producer, is investing PHP30 billion (513 million USD) to establish a new facility in Candelaria, Quezon. The plant will focus on producing heavy structural steel products, which are currently imported from neighboring countries.

The new heavy sections plant will utilize advanced European steel technology to manufacture over 1 million tons of structural steel annually. These products include H beams, I beams, angles, channels, sheet piles, plates, and other heavy profiles. By producing these locally, the Philippines is expected to save USD1.2 billion each year on steel imports.

SteelAsia chairman and chief executive officer Benjamin Yao emphasized the economic benefits of the project, stating, “We will create around 7,000 jobs instead of giving jobs to China, Vietnam, Thailand, Korea, and Japan, our major suppliers.”

The company aims to begin commercial operations by 2027. The new facility is also expected to improve delivery lead times significantly, reducing wait times from three to four months down to just one to two weeks.

Additionally, the Candelaria plant will incorporate environmentally friendly practices. “Our carbon footprint will also be 90 percent lower than the traditional steelmaking process because we use recycled scrap metal and employ electric arc furnace technology,” Yao added.

To execute the project, SteelAsia awarded the Engineering, Procurement, and Construction Management contract to MCC Huatian Engineering & Technology Co., Ltd. The company is a global leader in steel plant construction, having built over 230 steel plants with a total installed capacity exceeding 200 million tons across 14 countries.

“In steel manufacturing, we cannot compromise on technology and know-how because we are committed to producing the best steel products,” Yao said.