12/04/2014: SteelAsia Manufacturing Corp, The country’s largest steel manufacturersm, has shifted majority of its production to the provinces with the completion of its sixth plant, a P3 billion state-of-the-art steel plant in davao.
In a statement of inauguration of the company’s modern steel bar facility, SteelAsia Manufacturing Corp. President Benjamin Yao said that around 75 percent of its operation is no longer in manila, but dispersed-regionally.
Yao noted that the opening of the Davao steel bar mill will help decongests the manila ports.
“We are proud that we are part of the solution in decongestion of manila, “Yao Said.
The Davao Mill is the largest and most modern steel plant in the country, at par with the world’s best the Mill can produce 500.000 metric tons of rebar’s annually, bringing Steel Asia’s total production capacity to two million metric tons this year.
SteelAsia has three plants in Luzon, one in the Visayas, two in the Mindanao, including the new Davao plant.
Yao Stressed the plant’s completion is in time for government initiatives to build Mindanao infrastructure and generate business activity.
Since 2012 up to 2015 the Mindanao Public Works and Highways Budget allocation exceeded all major region groups which include NCR, Northern Luzon, Southern Luzon and Visayas.
The 2015 budget represents a 68% growth from the previous year’s budget. This budget grew from P20 billion of 2012, to P27,5 billion in 2013, P37.5 billion in 2014 and to the 2015 budget of P63 billion.
The plant opening is also in time for the expected growth of Mindanao, following the Bangsamoro peace agreement.
The Davao steel mill, which will create 2,000 jobs directly and indirectly, is expected to reduce the cost of construction in Mindanao. Rebars no longer need to be shipped from Manila, and as a result Manila and Davao rebar prices hence would be the same.
The elimination of sea freight reduces the carbon footprint associated with shipping fuel. The mill in itself is a benchmark for the steel industry in modern environmental protection. Despite large water needs, the mill collects 100% of its water through a rainwater collection system. The mill fully recycles water with zero effluent from operations. Its innovative closed lubrication system ensures no seepages of used oil into the environment. Its technologies are the most efficient in power and fuel consumption in the industry.
Government thrusts to encourage the manufacturing sector as a vehicle for inclusive economic growth are addressed by the steel industry, said Yao.