The Philippine Business Bank in tandem with government financial institutions (GFIs) have extended Steel Asia Manufacturing Corp. (SAMC) an P11.45 billion loan for the construction of a mini-mill in Lemery, Batangas.
The commercial lender partnered with the Government Service Insurance System (GSIS) and the Development Bank of the Philippines (DBP) to help SAMC build the steel manufacturing capability so lacking in the country.
GSIS president and general manager Jose Arnulfo “Wick” Veloso said the state-owned pension fund provided a third of the loan amount, or P3 billion, for the construction of a state-of-the-art medium sections mini-mill in Batangas.
SAMC, the largest steelmaker in the Philippines, supplies more than 80 percent of the steel bar requirements for land, air, sea, power, and communications infrastructure throughout the country.
“This partnership aims to assist SteelAsia and the steel sector. Together, we contribute to the country’s growth story. Establishing a robust steel industry in the Philippines will facilitate cost-effective infrastructure development and create more job opportunities,” Veloso said at the signing ceremonies.
The loan agreement underscores the GSIS commitment to align with the administration’s Build Better More (BBM) initiative, aimed at expanding infrastructure and housing programs and its support to growing the economy.
Recognizing the increasing demand for steel in both public and private infrastructure projects and the insufficient local manufacturing capacity, the three institutions signed and sealed the agreement that marks a significant step towards bridging the gap.
“We are proud to be a creditor of SteelAsia because this is good for our country. Building and creating a steel industry lessens our dependence on imports,” said DBP president and CEO Michael De Jesus.
“This a very momentous event in terms of the Philippine industrialization. We see the importance of steel manufacturing to be a vital component for nation building. The only way for the country to go up economically is to have a very strong steel manufacturing industry,” said Philippine Business Bank president Rolando Avante.
“The Lemery mill will directly employ 600 personnel and will produce high-strength, high- value steel products to substitute importation of H-beams, large angles, and other shapes and profiles. We can do it cheaper than import,” said SLWI chairman and CEO Benjamin Yao.
SteelAsia Lemery Works Inc. is a subsidiary of SteelAsiaManufacturing Corporation. The Lemery, Batangas plant will be the country’s first steel beam manufacturing facility with a capacity of producing 1.1 million tons of steel products annually.
The multi-billion peso-steel mill project was granted a “greenlane” endorsement by the Department of Trade and Industry’s (DTI) Board of Investment One Stop Action Center for Strategic Investments (OSAC-SI). Under Executive Order No. 18, a green lane endorsement expedites the processing and issuance of permits and licenses for projects identified as strategic investments.
