Cutting Import Reliance: ₱20-B Batangas Steel Plant to Supply Local H-Beams and C-Channels

SteelAsia Manufacturing Corp. has secured government incentives under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act for its ₱19.82-billion steel mill in Lemery, Batangas, making it the Philippines’ first registered High-Value Domestic Market Enterprise (HVDME).

Operated under its subsidiary, SteelAsia Lemery Works, Inc. (SLWI), the project was approved by the Fiscal Incentives Review Board (FIRB) under Tier II (Industrial Value Chain Gaps) of the Strategic Investment Priority Plan (SIPP). The HVDME classification applies to domestic projects exceeding ₱15 billion in capital investment that target critical import-substituting industries.

The 72-hectare facility in Barangay Mataas na Bayan will be the country's first dedicated local manufacturing plant for medium steel sections, including H-beams, I-beams, C-channels, and equal and unequal angle sections. Designed to meet Philippine National Standards, these structural shapes are essential for buildings, bridges, power plants, and industrial infrastructure. With a planned annual capacity of 500,000 metric tons, the plant addresses a major gap in the domestic steel supply chain, which currently relies entirely on imported structural steel shapes.

The facility incorporates low-carbon manufacturing technologies, featuring Electric Arc Furnace (EAF) steelmaking equipped with Tenova’s patented CONSTEEL Evolution system. The plant will utilize locally sourced recyclable steel scrap, operate on 100% renewable electricity, and employ zero-discharge wastewater treatment systems to recycle process water. These operational benchmarks align directly with the Philippine Iron and Steel Decarbonization Roadmap.

Targeted to begin commercial operations in January 2027, the facility is projected to directly employ 656 workers by its third year of operations. According to Board of Investments (BOI) estimates, the project will generate ₱107.4 billion in sales over its first five years, contribute ₱45.58 billion in total economic output, add ₱23.63 billion in household income, and support approximately 102,029 jobs across secondary supply chains.

As an approved HVDME, SteelAsia Lemery Works, Inc. qualifies for fiscal incentives under CREATE MORE, including value-added tax (VAT) exemptions on capital imports and an enhanced deductions regime to offset development expenditures.

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