In photo (L to R): Finance Secretary and FIRB Chair Frederick D. Go, Trade Undersecretary and BOI Managing Head Ceferino S. Rodolfo, SteelAsia Chair and CEO Benjamin O. Yao, SteelAsia Executive Vice Chairman Andre Y. Sy

PH’s first HVDME under CREATE MORE to establish first local manufacturing facility for medium steel sections.

—The Board of Investments (BOI) awarded a Certificate of Registration to SteelAsia Lemery Works, Inc. (SLWI) for its PHP19.82-billion project, the country’s first High-Value Domestic Market Enterprise (HVDME) registered under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act or CREATE MORE.

The BOI-backed project will establish the country’s first manufacturing facility for medium steel sections, addressing a critical gap in the domestic steel value chain. Located in Lemery, Batangas, the facility will produce structural steel products currently sourced largely through imports, strengthening local manufacturing capacity and supply chain resilience for the construction and infrastructure sectors.

Finance Secretary and Fiscal Incentives Review Board (FIRB) Chair Frederick D. Go said the project demonstrates how the HVDME provision under CREATE MORE can support strategic investments that strengthen domestic industries and reduce the country’s dependence on imported products.

“The Philippines remains highly dependent on imported medium steel sections, and this exposes our construction and infrastructure sectors to foreign exchange and supply risks, and having our own domestic production facility will help mitigate these risks. Certainly there will be much value added to our supply chain resilience objectives in our country,” said Secretary Go.

“This is the kind of investment we want to encourage, one that helps strengthen an industry that is critical to our infrastructure ambitions and our long-term economic development,” he added.

The project was approved by the FIRB for registration under Tier II (Industrial Value Chain Gaps) of the Strategic Investment Priority Plan (SIPP), pursuant to the CREATE Act, as amended by CREATE MORE.

The 72-hectare facility in Barangay Mataas na Bayan, Lemery, Batangas, will have an annual production capacity of 500,000 metric tons and is targeted to begin commercial operations in January 2027. It is expected to employ 656 workers directly by its third year of operations.

SLWI will produce H-beams, I-beams, C-channels, and equal and unequal angle sections for structural applications such as buildings, bridges, power plants, industrial facilities, and other infrastructure projects. The products will comply with applicable Philippine National Standards.

SteelAsia Chair and CEO Benjamin O. Yao highlighted the importance of long-term government support in enabling large-scale industrial investments and strengthening the country’s manufacturing base.

“Our section mill project in Lemery, Batangas comes at a time when supply chain security and economic sovereignty becomes top priority. A time when there is a renewed call for industrialization. A time when the Philippines is regaining our capability to build, make, and innovate and realize that it is never too late to industrialize. Kaya pala, [comma] sapagkat naniniwala tayo sa tibay ng Pilipino,” said Chairman Yao.

“As we accept this incentive package, we look forward to serving the needs of the Philippine market, start enabling downstream SMEs, and start saving billions of dollars through import substitution, reducing our huge trade deficit,” he added.

The facility will use Electric Arc Furnace (EAF) steelmaking technology incorporating the patented CONSTEEL Evolution technology developed by Tenova of Italy. Operating on 100% renewable electricity and locally sourced recyclable steel scrap, the project will also employ wastewater treatment systems that enable water recycling and eliminate wastewater discharge into the external environment.

These features align with the Philippine Iron and Steel Decarbonization Roadmap and support the country’s transition toward more efficient, resource-conscious, and lower-carbon steel production.

During its first five years of operation, the project is projected to generate PHP107.4 billion in sales. Its multiplier effects are also estimated to contribute an additional PHP45.58 billion in economic output, generate PHP23.63 billion in household income, and support approximately 102,029 jobs across the economy.

Trade Undersecretary and BOI Managing Head Ceferino S. Rodolfo emphasized the significance of the project as a milestone for both the country's industrial development agenda and the implementation of the government's investment promotion framework.

“This project is significant not only because of the scale and strategic importance of this investment, but also because it demonstrates how our investment promotion framework can be used to support the development of industries that are critical to the country's long-term growth and industrial development,” Undersecretary Rodolfo said.

“May this milestone serve as an example of what we can achieve when government and private sector come together in pursuit of a stronger, more resilient, sustainable, and more industrialized Philippines,” he added.

Through CREATE MORE and the SIPP, the BOI remains committed to supporting strategic investments that fill critical value chain gaps, build domestic productive capacity, and contribute to a stronger and more resilient Philippine industrial sector.