Puyat Steel spending P500 M for Batangas production plant

Puyat Steel Corp. is spending P500 million to construct a pipe manufacturing plant in Batangas to expand operations, the Department of Trade and Industry (DTI) said.

Company chairman Edgardo Reyes relayed its plan to Trade Secretary Ramon Lopez in a meeting held on Dec.11.

Reyes said the plant to be located beside the company’s existing plant in Batangas, would produce steel pipes of up to three meters in diameter.

The plant is expected to be operational in the first quarter of next year and will create 350 jobs.

Puyat Steel’s expansion plan will help address the growing demand for steel products in the country.

It will also contribute to reducing the country’s trade deficit through import substitution.

Lopez is encouraging local manufacturing companies to expand operations to help support economic growth.

Boosting the manufacturing sector creates jobs, increases the production capacity to support the rapidly expanding domestic demand and export requirements, and helps reduce the trade deficit, Lopez said.

As part of DTI’s push for fair trade practices and a level playing field for domestic industries, the agency is studying the inclusion of steel pipes and roofing materials on the list of products requiring mandatory certification.

Requiring mandatory certification will ensure only quality standard materials safe for use are sold in the market.

Lopez said strengthening enforcement of industry standards would prevent substandard imports and smuggled goods from entering the country.

Trade undersecretary Ruth Castelo who heads the Consumer Protection Group said the DTI is also pushing for the use of international standards for all local and imported steel products.

Puyat Steel, which has been operating for 62 years, established the first galvanizing plant in the Philippines.

The company is involved in producing galvanized iron sheets for construction, building, and roofing materials.