SteelAsia spends P25B to build wire rod mills

STEELASIA Manufacturing Corp. has P25 billion to establish two wire rod mills that are expected to produce one million tons per year.

In a statement, the company said the first wire rod mill, located in the Visayas, would have a capacity of 500,000 tons with output destined for central and southern Luzon.

The second mill, which will also have a 500,000-ton capacity, will be established in Central Luzon to serve customers in Metro Manila and the rest of the island.

“At present, the Philippines has zero capacity for wire rods. That means, we are importing all our wire rod requirements, which have reached 800,000 tons a year and [are] climbing,” SteelAsia Chairman and CEO Benjamin Yao said.

“When [the new plants are] operational … [the resulting] import substitution will save the country around $600 million a year in foreign currency,” he added.

Wire rods are raw material used to make products such as machine parts, springs, cables, welding wires and rods, mesh, nuts and bolts, screws and other fasteners, tools and tire cord.