SteelAsia borrows P8.3b from GSIS, banks

STEELASIA Manufacturing Corp., one of the world’s largest reinforced bar manufacturers, said Friday it secured an P8.3-billion loan from a consortium of banks to complete its P18-billion steel section mill in Lemery, Batangas.

“Steel is an investment priority of the Marcos administration. Because of this loan from GSIS [Government Service Insurance System] and DBP [Development Bank of the Philippines] and the ever-supportive PBB [Philippine Business Bank], we are

finally on our way to having a Philippine steel industry,” said SteelAsia chairman and chief executive Benjamin Yao.

The new Lemery plant will be the Philippines’ first dedicated steel sections mill. Scheduled for completion in 2025, it will play a pivotal role in reducing reliance on imported steel sections like H beams, I beams and angle bars.

The Philippines relies heavily on imports to meet its steel needs, exceeding 80 percent for steel products beyond rebar.

Yao said a robust local steel sector would not only drive down construction costs but also create new manufacturing opportunities and tens of thousands of jobs.

GSIS president and general manager Jose Arnulfo Veloso said the project would set the stage for increased domestic production, contributing to economic resilience.

“It addresses our need to reduce dependency on imported steel, which in turn helps balance our trade and keeps more capital within the Philippines. This not only strengthens our economic position but also supports our broader goals of nation-building,” Veloso said.

SteelAsia, the Philippines’ leading steel company, operates steelmaking, rebar manufacturing and rebar fabrication plants across Bulacan, Batangas, Cebu and Davao. In 2022, the company launched a five-year development plan to propel the domestic steel industry forward.