Steel Asia has expressed confidence that Mindanao will experience faster growth after going into an economic stagnation for two decades.
Company president Benjamin Yao made the statement during the inauguration of its P3-billion steel- bar mill in Davao City. The event was attended by top government officials, led by Trade Secretary Gregory L. Domingo, foreign suppliers and businessmen.
Yao told reporters that the company’s construction of a steel plant in the region is proof of its belief in Mindanao’s bright economic prospects. Steel Asia executives are confident that the creation of the Bangsamoro region will further boost Mindanao’s growth.
The company’s steel plant, which was built on 11 hectares of land, can produce 500,000 metric tons (MT) of rebars per annum.
It was described as “the largest and most modern steel-bar mill, at par with the world’s best” and “is a benchmark for steel industry for modern environmental protection.”
Construction for the mill started in 2011, while test production began in March 2014. Permit for commercial operation was issued to the firm in July.
The opening of the Davao plant brings the company’s total production capacity to 2 million metric tons (MMT) from its six plants, which is more than half of the country’s demand for the product estimated at 3.3 MMT this year. Steel Asia has three plants in Luzon, one in the Visayas and two in Mindanao, including the new Davao plant.
The company procures raw materials from China, “which has currently a glut, oversupply situation of it.”
The Davao plant is expected to reduce the cost of construction in Mindanao as rebar sold in Davao would be on a par with those being peddled in Manila.