SteelAsia Manufacturing Corp. (SAMC) has inaugurated its Davao Works Rolling Mill in Davao City.
SAMC chair Benjamin Yao, Department of Trade and Industry (DTI) Secretary Gregory Domingo and former Davao City Mayor Sara Duterte-Carpio led the December 4 opening of the first steel plant in Davao City.
Yao said the strategic location of the Davao plant would cut shipping cost of steel construction materials traditionally sourced from Manila.
SteelAsia, he said, supplies about 50 percent of the country’s demand for steel construction materials. He said the Davao plant was expected to provide a large chunk of supplies to Mindanao’s construction industry.
Sec. Domingo said the SteelAsia plant is a boon to the Mindanao construction industry in terms of lesser transport cost and speed of delivery.
This plus factor, he said, would eventually lure more investors to Mindanao. He said SteelAsia has a crucial role in spurring Mindanao’s economy with its Davao plant producing cheaper materials delivered on time.
Yao said SteelAsia was inspired to establish the Davao plant by Mindanao’s robust economy and the large market in Davao City.
Yao said SteelAsia is optimistic of the growth of Mindanao following the Bangsamoro peace agreement, and its Davao plant’s completion “is in time for government’s initiatives to build Mindanao’s infrastructures.”
“We are proud to be the first to have the best for the benefit of the economy of the region and most importantly the people who need it most, the consumers, ” said Sara Duterte, who represented her father Mayor Rodrigo Duterte, in praising SteelAsia for locating in Davao City.
The 11-hectare Davao plant is projected to produce 500,000 metric tons of rebars annually using the most modern of Italian technology.
In February this year, SteelAsia also opened its plant at the Phividec industrial estate in Cagayan de Oro City.
The Davao City plant has an initial 300 workers, but with the addition of at least 2,000 direct and indirect jobs in the future.
The Davao plant’s production raises the company’s total production capacity to two million metric tons from its six plants, which is more than half of the country’s demand of the product of 3.3 million metric tons this year.
SteelAsia has three plants in Luzon, one in Visayas, and two in Mindanao, including the new Davao plant.
The company procures raw materials from China.