SteelAsia gets ‘green lane’ status for Candelaria project
The Board of Investments (BOI) has granted green lane certification to the P30-billion project of major steel manufacturer SteelAsia Manufacturing Corp. in Quezon province. It is expected to reduce the country’s dependence on steel imports and boost the local industry.
The BOI said the heavy sections mill and new-generation scrap recycling mini-mill project of SteelAsia unit Candelaria Steel Inc. is slated to start commercial operations by July 2027.
“The project is strategically designed to address the country’s heavy reliance on steel imports, which currently adds three to four months to local production timelines,” the BOI said in a statement on Wednesday.
Once operational, the Candelaria project will produce up to one million metric tons of heavy steel sections yearly. These include Angles, Channels, H-Beams, I-Beams, Sheet Piles, and Universal Mill Plates.
In a move to incorporate sustainability in operations, Candelaria Steel will employ the Electric Arc Furnace technology by using locally sourced recycled scrap metal instead of imported raw materials.
This recycling process reduces carbon dioxide emissions by at least 70 percent as opposed to traditional blast furnace methods.
“It is expected to generate approximately 655 in-plant jobs and 3,000 indirect jobs, boosting local economic activity and enhancing the domestic steel supply chain,” the BOI said in a statement on Wednesday.
According to the BOI, the steel mill facility will complement SteelAsia’s medium section mill currently under construction in Lemery, Batangas.
The Lemery plant, which received the same certification in 2023, will manufacture medium sections and merchant bars, all of which are imported.
SteelAsia expressed its gratitude to the BOI for streamlining the permit processing, as this will help avoid additional costs from delays and support the country’s infrastructure needs.
“Both SAMC plants intend to supply the Bataan-Cavite Interlink Bridge project and help close critical gaps in domestic steel production, support fabrication shops and boost the country’s industrial competitiveness across Southeast Asia,” it added.
