GSIS and banks support SteelAsia with P11.45-billion loan

The Government Service Insurance System (GSIS), along with the Development Bank of the Philippines (DBP) and Philippine Business Bank (PBB), have secured a substantial financial agreement to bolster the Philippines’ steel manufacturing sector.

The agreement, involving a total of P11.45 billion, earmarked P3 billion from GSIS, is directed towards the construction of a state-of-the-art steel mini-mill in Barangay Mataas na Bayan, Lemery, Batangas, operated by SteelAsia Manufacturing Corporation (SAMC).

SteelAsia, the nation’s largest steelmaker, currently supplies over 80% of the steel bar requirements essential for the country’s infrastructure across land, air, sea, power, and communications. This new project is anticipated to further solidify the domestic supply and reduce reliance on imported materials.

GSIS President and General Manager Wick Veloso highlighted the significance of this initiative at the signing ceremony: “This partnership aims to assist SteelAsia and the steel sector at large. Together, we contribute to the country’s growth story by facilitating cost-effective infrastructure development and creating more job opportunities.”

The loan agreement aligns with the government’s Build Better More (BBM) initiative, which focuses on expanding infrastructure and housing programs to support economic growth.

Acknowledging the critical role of steel in national development, DBP President and CEO Michael De Jesus noted, “We are proud to be a creditor of SteelAsia because this is good for our country. Building and creating a steel industry lessens our dependence on imports.”

Philippine Business Bank President Rolando Avante also recognized the project’s broader implications for Philippine industrialization.

“This is a very momentous event in terms of the Philippine industrialization. The importance of steel manufacturing is vital for nation-building,” he commented.

SteelAsia’s Lemery facility, once operational, is expected to employ 600 personnel and will produce high-strength, high-value steel products to replace imports of H-beams, large angles, and other steel shapes and profiles, according to SteelAsia Chairman and CEO Benjamin Yao.

Additionally, this project is backed by a ‘greenlane’ endorsement from the Department of Trade and Industry’s (DTI) Board of Investment One Stop Action Center for Strategic Investments (OSAC-SI), ensuring expedited processing of necessary permits and licenses.

This strategic investment not only promises to enhance the domestic supply chain of steel but also aims to position the Philippines better in global manufacturing competitiveness.