SteelAsia Manufacturing Corp. is accelerating its expansion program as it pushes to replace imported steel with locally produced alternatives, a strategy that could reduce the Philippines’ trade deficit by as much as USSD2 billion once its new facilities are fully operational.
SteelAsia chairman and chief executive officer Benjamin Yao said the company’s new Lemery Works facility in Batangas will begin partial operations by October or November, ahead of its original 2027 schedule.
“The first section, we start producing by the end of this year,” Yao told reporters, citing strong construction progress over the past 18 months.
The accelerated timeline highlights SteelAsia’s focus on import substitution rather than exports. The company is targeting steel products that are currently sourced largely from overseas suppliers, betting on strong domestic demand from infrastructure, industrial, and private construction projects.
“The market is there. It’s all done by imports. We need to produce locally,” Yao said.
The strategy comes as the Philippines continues to rely heavily on imported steel products, making the sector a significant contributor to the country’s trade deficit. By expanding local manufacturing capacity, SteelAsia aims to strengthen domestic supply chains while reducing the need for imports.
Yao said the impact of the company’s investments should become more visible beginning next year as production ramps up. Once completed over the next four years, the expansion projects are expected to significantly cut steel imports and improve the country’s trade balance.
While SteelAsia previously exported more than 100,000 metric tons of steel to Canada under spot contracts, exports are no longer part of the company’s immediate plans amid global trade uncertainties and tariff risks.
Instead, the company remains focused on serving the local market and pursuing additional projects beyond Lemery.
SteelAsia is also keeping an initial public offering under consideration as it continues to expand its footprint in the country’s growing steel industry.
