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SteelAsia Manufacturing Corp., a leader in steel manufacturing, has signed an agreement with Italy-based Danieli Co. Ltd. to establish the country’s first heavy steel sections mill in Candelaria, Quezon.
In a statement, SteelAsia said the project, which will cost approximately ₱30 billion, will be the first manufacturing facility in the Philippines to produce heavy beams, angles, channels, sheet piles, and narrow plates.
The company noted that infrastructure projects in this country import all of these components from China and Vietnam.
Since these components are manufactured abroad, the delivery lead time usually takes three months or longer.
SteelAsia is stepping in to change this status quo once it commences its heavy steel section mill operations in 2027.
This facility will deliver locally manufactured steel to construction sites within two weeks.
Special Assistant to the President for Investment and Economic Affairs (SAPIEA) Secretary Frederick Go, said the Candelaria mill and SteelAsia’s section mill under construction in Batangas will replace around $1.2 billion worth of imports annually.
“It will really help our country’s self-sufficiency and reduce importation dependence from international suppliers,” said Go.
The two future mills of SteelAsia are expected to generate 7,000 jobs, both within the plants and across its external supporting industries.
Once operations kick in, they are expected to open more job opportunities as downstream pre-engineered building and fabrication industries further develop alongside the mills.
“This is exactly what the administration of President Ferdinand Marcos seeks to attract. We want these kinds of investments to rebuild our economy and move from a consumption-based economy to a more sustainable investment-led economy,” added Go.
Under the agreement, Danieli will supply all the core equipment and technology for the Candelaria mill.
SteelAsia and the Italian firm have been working together for more than 30 years for the former’s previous expansion projects.
Once again, SteelAsia is tapping into Danieli’s green steel technologies to make the Candelaria facility one of the lowest carbon footprint producers in the world.
The mill is expected to avoid two million tons of carbon dioxide (CO₂) emissions annually, in line with global efforts to decarbonize the steel industry.
It will be SteelAsia’s sixth operating steel mill, as the company sets out for further expansion and diversification of its product line and steel manufacturing capacity.
