Source: The Manila Times
A substantial number of jobs is expected to be created as Steel Asia Manufacturing Corp. continues to expand capacity amid growing construction sector demand, the Trade department said.
“With the expansion of Steel Asia, jobs in the steel industry are expected to double from the present 10,500 personnel to around 21,000. Job multipliers in support industries will also result in creating 52,500 more jobs, doubling the support industries job output to around 126,000,” Steel Asia President Benjamin Yao was quoted as saying in a statement.
“Once the HBIS (Hebei Iron and Steel Group) integrated steel facility becomes operational along with the revival of the flat segment, steel industry jobs and its related industries could also potentially double up to 300,000 personnel,” he added.
The steel manufacturer has an ongoing five-year P105-billion expansion program, P66 billion of which is registered with the Board of Investments.
Steel Asia’s expansion projects are “in varying degrees of construction, commissioning or full-operational,” the Trade department noted.
Last December, Steel Asia, HBIS, Huili Investment Fund Co. Ltd., the Trade and Defense departments inked a deal for a $4.4-billion integrated steel facility inside the Phividec Industrial Estate in Misamis Oriental.
The Mindanao steel facility will produce “major intermediate steel products” including billets and slabs that are currently only sourced from imports, the Trade department said.
The Steel Asia chief said that the firm’s bid to expand capacity was in a response to rising demand for steel amid the government’s “Build Build Build” infrastructure program.
“The steel industry has been keeping pace with our strong GDP (gross domestic product) growth. This year, industry forecasts that steel consumption will rise by about 6 percent to around 11.1 million tons. Last year, steel consumption topped 10.5 million tons,” Yao said.