New steel billet plant to rise in Carmona, Cavite

Portal Steels, Inc. is investing R322.7 million for a steel manufacturing plant in Carmona, Cavite to supply its own requirement and to serve the local market as well.

The Board of Investments (BOI) has approved the project with tax and fiscal incentives under the manufacturing activity of the Investment Priorities Plan (IPP).

Based on its application, the firm will produce steel billets and rebars at an annual production of 48,000 metric tons (MT) and 22,800 MT, respectively.

Around half of the billet production is for commercial sale in support for other rolling mill operations inside and outside the country while the other half is for its own use intended for integrated rolling mill operations.

It will be using one of the most modern billet and rebars making technology available to the local industry in making the project capable of producing higher quality steel and more efficiency in terms of production output. Raw materials (scrap metals) will all be sourced locally.

The project is expected to start commercial operations in December 2017 with 75 personnel.

Production of rebars is expected to cater to the domestic demands of the infrastructure industry.

"Steel companies stand to benefit in light of the government’s ‘build, build, build” strategy to usher the country in the “golden age of infrastructure” with infrastructure spending of up to seven percent of the country’s Gross Domestic Product (GDP),” said Trade Undersecretary and BOI Managing Head Ceferino Rodolfo.

He added that the BOI would continue to push for the revitalization of the country’s steel industry as it is not only a critical component of our infrastructure but also essential in achieving inclusive economic growth and sustainable development.