After PBBM state visit to China, P108-B steel manufacturing plant to rise in Cebu; 2K jobs seen

After PBBM state visit to China, P108-B steel manufacturing plant to rise in Cebu; 2K jobs seen

By Junex Doronio
January 24, 2023

PHOTO CAPTION: Li Huaidong (left), senior vice president of Baowu Group Zhongnan Iron and Steel Co., and Benjamin Yao, chair and CEO of SteelAsia, sign an agreement to pursue a project that will generate about 2,000 jobs. (contributed photo)

COMPOSTELA, Cebu — Following the recent three-day state visit of President Ferdinand “Bongbong” Marcos Jr. to China, the SteelAsia Manufacturing Corp. has disclosed that it had entered into an agreement with the world’s largest steel producer, China’s BaoSteel Group, to build a P108-billion integrated steel facility in the Philippines, with its seventh plant to be constructed in this third-class municipality.

Presently, SteelAsia Manufacturing operates six manufacturing plants in Bulacan, Batangas, Carcar City in Cebu, Davao, and Misamis Oriental.

“This project will spawn new industries and wean the country from its perennial dependence on imports. It will generate about 2,000 jobs, including for professionals who, in the past, have had to work abroad and leave their families,” Benjamin Yao, chairperson and chief executive officer of SteelAsia, said.

SteelAsia is eyeing to build its seventh plant this year in this municipality, 25 kilometers north of Cebu City. The other plant is in Carcar City, 40 kilometers south of Cebu City.

The Philippine steel company, based in Taguig City, Metro Manila which touts itself as the country’s largest steel producer, represented by Yao has signed the deal with Li Huaidong, senior vice president of Baowu Group Zhongnan Iron and Steel Co., during PBBM’s three-day state visit to China earlier this month.

It was learned that the project will produce three million tons of liquid steel, which can be converted into almost any finished steel product.

Subsequently, these products can strengthen other local industries, including the construction sector, the automobile and ship-building industries, as well as appliance manufacturers.

The Compostela plant is projected to increase SteelAsia Manufacturing’s output from 2 million metric tons of steel annually to 3 million MT. (ai/mtvn)

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