SteelAsia to recycle rebars for ALI, MDC
Ayala Land Inc. (ALI), SteelAsia Manufacturing and Makati Development Corp.(MDC) have signed a memorandum of understanding for a groundbreaking collaboration advancing circular economy and decarbonization methods in the construction industry.
The agreement solidifies the practice of SteelAsia supplying MDC with rebars made from recycled content sourced from scrap generated by ALI projects. This initiative exemplifies a tangible application of circular economy principles, emphasizing waste reduction and costefficiency. MDC is the construction arm of ALI.
The approach aims to reduce the carbon footprints of the three companies whose diverse core businesses form a perfect synergy in recycling and reusing rebars.
“We have found a common ground to pursue a common goal: reduce and recycle waste to protect the environment and fight climate change. At the same time, this partnership will result in lower project costs, push industrialization and save precious dollars. This is circular economy in action,” the group said in a joint statement.
ALI began its decarbonization journey in 2017 when it committed to carbon neutrality for the controllable emissions of its commercial properties. The property developer took it a step further in 2022 when it set a target of net zero emissions in 2050.
Recognizing the significant role of rebars in its supply chain emissions, ALI sees the collaboration with SteelAsia, the Philippines’ pioneer in steel-recycling, as a crucial step towards realizing its net zero goals. Rebars make up about 50 percent of ALI’s supply chain emissions, which in turn account for 95 percent of the company’s footprint.
The country exports most of its scraps and imports finished steel products, a low-value business with high import costs that eventually affect project costs.
SteelAsia is the country’s largest steel company. It has six strategically located plants to keep its prices the same all over the country. It supplies rebars to the largest local developers including ALI, has exported to Canada, and provided 100 percent of the rebars to build Cebu’s Cordova Bridge, among others.