Steel Asia to invest USD1B for new mills

MANILA -- Steel Asia Manufacturing Corp. is set to invest some USD1.0 billion for three new mini steel mills in the country, its Vice President Roberto Cola said Tuesday.

Cola told reporters that the new facilities would produce billets, bloom, beam blanks, slabs, rebars, wire rod, sections, and plates.

The three mini mills will have a total capacity of two million metric tons annually.

Cola mentioned that Steel Asia is partnering with two investors - from Italy and Japan - for the plates and sections plants, while the facility producing rebars would be its own venture.

He said Steel Asia is now finalizing the memoranda of agreement with the two partner investors.

The company is eyeing Batangas and Subic for the location of its mini steel mills.

This is after Steel Asia has abandoned its plan to acquire the National Steel Corp. (NSC) in Iligan City, as the company and the local government failed to reach to an agreement.

Cola said that the company was asked to pay NSC’s liabilities on taxes and power, and the local government would also like to be a part owner of the facility.

According to Cola, Steel Asia’s offer was to lease the land, pay for the infrastructure, and shoulder “reasonable taxes”, but the company would no longer pay for the old mill since the company initially plans to put up new facility. (PNA)