SteelAsia Manufacturing Corp. has signed a landmark agreement with Italian metals technology leader Danieli Co. Ltd. to build the country’s first heavy steel sections mill in Candelaria, Quezon — a P30 billion investment poised to reshape the country’s construction and manufacturing landscape.
The agreement was formalized in a ceremony attended by key officials, including Italian Ambassador to the Philippines H.E. Davide Giglio and Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go. Under the deal, Danieli will supply all core technology and equipment for the mill, which is scheduled to begin operations in 2027.
Danieli CEO Giacomo Mareschi Danieli emphasized the national impact of the project: “Steel is the base development of any country. This is laying the foundation of future development in the Philippines.”
The Candelaria mill will be the first facility in the country capable of locally producing critical structural steel products such as heavy beams, sheet piles, angles, and channels — items that are currently 100 percent imported, primarily from China and Vietnam. These materials, preferred in typhoon-prone and seismic regions like the Philippines, offer enhanced tensile strength over traditional reinforced concrete.
Secretary Go underscored the strategic value of the project, saying, “This is exactly what the administration of President Ferdinand Marcos seeks to attract — investments that transition our economy from consumption-led to investment-driven growth.”
The mill, alongside another SteelAsia section mill under construction in Batangas, is expected to create approximately 7,000 jobs and catalyze the growth of downstream industries such as pre-engineered buildings and steel fabrication.
The local production of these materials is projected to significantly reduce lead times for construction projects — from three months to two weeks — and ease pressure on the country’s dollar reserves. Once operational, the two mills could replace around USD1.2 billion worth of steel imports annually.
Ambassador Giglio praised the project as a “milestone” for Philippine industrial sovereignty and a testament to the enduring three-decade collaboration between SteelAsia and Danieli.
Furthering its sustainability goals, SteelAsia will use Danieli’s green steel technologies, aiming to avoid two million tons of CO₂ emissions annually — setting a benchmark in low-carbon steel manufacturing.
As the country’s largest steel producer, SteelAsia continues to lead efforts in building a self-reliant, globally competitive steel industry, with the Candelaria mill becoming its sixth operational facility nationwide.
