Cebu-based Compostela will start shipping product around June. It will be able to produce up to 1 million tonnes of high-strength rebar per year. Thus, the total capacity of SteelAsia's rebar production lines will reach 3 million tonnes per year.
The project started in 2018, but construction was suspended in 2020 due to the coronavirus pandemic. SteelAsia received a 5.7 billion peso ($117.9 million) loan from the state-owned Development Bank of the Philippines (DBP) in June 2020 to resume the project. The cost of the entire project was about $200 million. Equipment for the Compostela plant was supplied by the Italian company Danieli.
After the plant is operational, construction of a second rolling mill for wire rod production will begin. Currently, the Philippines does not produce this product, but only imports it. The commissioning of new capacities will help the country reduce the volume of purchases of related products.
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