AG&P Industrial is betting that the next wave of global infrastructure spending will require bigger factories, faster execution and smarter manufacturing, prompting the company to build a new 85-hectare fabrication yard in Batangas that will significantly expand its production capacity.
The company broke ground on the San Pascual facility on July 24, marking one of its largest manufacturing investments in decades. Once operational, the yard will be capable of fabricating 80,000 metric tons of modules annually, serving projects in the energy, power, refining, chemicals, digital infrastructure and industrial sectors.
The expansion comes as demand for modular construction continues to grow, with developers seeking faster project delivery amid rising costs and persistent supply chain challenges.
“The groundbreaking symbolizes a major new chapter in AG&P Industrial’s history,” President and Chief Executive Officer Alex Gamboa said. He added that the facility will allow the company to execute more than USD500 million worth of projects annually for customers worldwide.
The San Pascual complex will eventually replace AG&P Industrial’s four-decade-old heavy fabrication yard in Bauan, Batangas. While the transition marks the end of an era for the company’s original manufacturing hub, it also reflects a broader shift toward larger, more technologically advanced production facilities designed for increasingly complex industrial projects.
Central to the investment is AG&P Industrial’s proprietary Modstruction execution system, which transfers much of the work traditionally done at construction sites into a controlled manufacturing environment. The approach is designed to shorten project schedules, improve quality, enhance worker safety and reduce overall construction costs.
The new yard will also feature a dedicated wharf, expanded assembly areas, specialized heavy-load facilities and the potential for drydock operations, allowing larger modules to be fabricated and shipped directly to international project sites.
Managing Director Anupam Ahuja described the investment as a transformative milestone that strengthens the company’s global delivery capabilities through advanced technology, skilled Filipino workers and world-class manufacturing infrastructure.
Construction is set to begin shortly, with fabrication operations expected to start in the fourth quarter of 2026. Beyond expanding AG&P Industrial’s footprint, the project reinforces Batangas’ growing role as one of the Philippines’ premier industrial manufacturing and export hubs.
