STEELASIA, HBIS GROUP SIGN MOU FOR $1-B BATANGAS STEEL FACILITY

Philippine flagship steel firm Steelasia Manufacturing Corp. signed a memorandum of understanding (MOU) with China’s HBIS Group, the fourth biggest steel firm in the world, for the construction of the country’s first integrated iron and steel facility in Lemery, Batangas.

To be constructed in two phases, the first phase will have a production capacity of around two million tons of iron and steel with a total investment of approximately US$1 billion (P52 billion).

The project is poised to become one of China’s biggest investments to the Philippines meant to boost production of construction grade materials, providing direct employment for around 4,000 Filipinos for the first phase.

During President Rodrigo Duterte’s recent visit to China, he welcomed the agreement between Steelasia and HBIS, saying that the project is very important to the country.

New capacity from this plant will substitute imports as it will produce basic steel products such as billets, beams, hot rolled flat steel, and other structural sections which are used for infrastructures such as airports, power and telecommunication towers, bridges, and ports, and reclamation projects. Thus, the country will increase its steel self-reliance and contribute significantly to the country’s economic development.

Steelasia Chairman and CEO Benjamin Yao said that HBIS will bring in new technologies that will make steel manufacturing in the country cleaner, more efficient and productive. “This kind of investment is what we need in the country, rather than those that make us a dumping ground of obsolete technologies that degrade the environment,” he said.