January 28, 2023

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Asian Food and Travel Chronicles

SteelAsia, BaoSteel to put up ₧108-B integrated steel plant

2 min read

SteelAsia Manufacturing Corp. and China’s BaoSteel Group have entered into an agreement to build a P108-billion integrated steel facility.

The deal was signed by SteelAsia Chairman and CEO Benjamin Yao and Baowu Group Zhongnan Iron & Steel Co. Sr. Vice President Li Huaidong during President Ferdinand Marcos Jr.’s 3-day state visit to China early in January.

The facility will produce 3 million tons of liquid steel that can be converted into almost any finished steel product that can then feed and strengthen other industries such as the construction sector, automobile industry, appliances and ship building to name a few.

“This project will spawn new industries and wean the country from its perennial dependence on imports. It will generate about 2,000 jobs, including for professionals who in the past have had to work abroad and leave their families,” Yao said in a statement.

Baowu will be fielding a team next month to jointly explore with SteelAsia a possible suitable location for this project.

SteelAsia operates 6 manufacturing plants in Bulacan, Batangas, Cebu, Davao and Misamis Oriental. It is set to open its seventh plant this year in Compostela town in Cebu. This will increase its output from 2 million metric tons (MMT) of steel annually to 3 MMT.

SteelAsia is the largest steel producer in the country while the Bao Group is the world’s largest.

In 2020, China Baowu produced 115 million tons of steel, realizing the historic leap of “100 million tons Baowu” and becoming the top steel enterprise in the world. In the Fortune Global 500 list released by Fortune in 2022, China Baowu ranked 44th, entering the top 50 for the first time.

During his state visit in China from January 3 to 5, Marcos was able to secure $22.8 billion worth of investment pledges.

These investment commitments include $1.72 billion for agribusiness, $13.76 billion for renewable energy, and $7.32 billion for strategic monitoring (electric vehicle, mineral processing).

Also signed during the visit are deals related to investments in coconut and food processing; development of durian production; and processing and marketing, as well as alternative green technology for animal feeds and other agriculture related products; and the sustainable supply of agriculture inputs, especially fertilizers.

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