The Board of Investments (BOI) has approved a P322.7- million steel plant of Portal Steels Inc. that qualifies the upstart company as a new operator under the Investment Priorities Plan (IPP).
In a news statement issued on Tuesday, the investment-promotion agency announced Portal’s new steel-making facility has been entitled to avail itself of tax incentives as a manufacturing activity in the IPP.
“Steel companies stand to benefit in light of the government’s ‘Build, Build, Build’ strategy to usher the country in the ‘golden age of infrastructure’ with infrastructure spending of up to 7 percent of the country’s gross domestic product,” Trade Undersecretary and BOI Managing Head Ceferino Rodolfo said.
The firm is expected to produce steel billets and rebars at an annual production rates of 48,000 metric tons (MT) and 22,800 MT, respectively. Portal’s commercial operations will start in December this year, with an initial employment of 75 personnel.
Around half of the billet production is for commercial sale to other rolling mill operations in the local and foreign markets, while the other half will be used as input in the company’s integrated rolling mill operations.
The increased steel production will respond to the rising demand for construction needs in the infrastructure industry.
The iron and steel industry provides necessary inputs for the construction of infrastructures, power generation and distribution, transportation facilities and vehicles, manufacturing machinery and equipment.
The Philippines imports 80 percent of the country’s crude steel requirements, referring to the flat and long products’ main input materials (slabs and billets).