SteelAsia’s P19.3-B Batangas steel mill project gets ‘green lane’ certificate

The multi-billion peso steel mill project of SteelAsia Lemery Works Inc. in Lemery, Batangas has been granted a “green lane” endorsement by the Department of Trade and Industry’s (DTI) Board of Investment One-Stop Action Center for Strategic Investments (OSAC-SI).

In a statement on Thursday, the BOI said SteelAsia’s 500,000-metric ton section mill project has been awarded the Green Lane Certificate of Endorsement on September 15.

Under Executive Order No. 18., a green lane endorsement can expedite the processing and issuance of permits and licenses for projects identified as strategic investments.

SteelAsia’s project has an initial investment cost of P19.3 billion.

The project is expected to start operations in July 2024 and would be employing 600 personnel and workers from the local town and nearby areas.

The section mill project was described as “a state-of-the-art hot-rolling production line with an upstream integrated recycling-based steelmaking.”

The BOI said due to the lack of steel manufacturing players in the country, the Philippines ranked 20th among the top importers of steel globally.

The investment promotion agency said that in 2022 alone, the Philippines imported about $5.23 billion worth of steel, $2.18billion of which was imported from China.

Local steel manufacturing is deemed insufficient to address the growing demand for the product, especially with the increasing consumption of sections from both infrastructure projects and private developments, according to the BOI.

“Green lane will be very helpful to the company. We consider it as a ‘win’ for the country and we will convert this privilege into action,” said Benjamin Yao, chairman and CEO of SteelAsia.

The BOI said SteelAsia’s project has an “import-substitution strategy” targeting the large and fast-growing domestic market for the sale of the mills’ output.

The plant will manufacture using electric arc furnace (EAF) technology to refine steel which will be used to hot-roll steel sections such as H-beams, I-beams, I-channels, and unequal leg angle bars, it said.

The investment promotion agency said the presence of local manufacturers aims to lower the cost of construction, shorten construction periods, and further spur growth in domestic construction.

It will also give rise to ancillary industries, such as structural steel services including design, engineering, and built-up steel structures, the BOI said.—AOL, GMA Integrated News