Business
GSIS, banks ink loans for Steelmaker SteelAsia
Government Service Insurance System (GSIS) signed a loan agreement with Steel Asia Manufacturing Corporation (SAMC) at the GSIS Financial Center, Pasay City to help build local steel manufacturing capabilities in the country.
The Development Bank of the Philippines (DBP), Philippine Business Bank (PBB) and the GSIS extended funding amounting to P11.45 billion, with GSIS lending P3 billion for the construction of a state-of-the-art medium sections mini-mill in Barangay Mataas na Bayan,
SteelAsia Manufacturing Corporation (SAMC), the largest steelmaker in the Philippines, supplies more than 80% of the steel bar requirements for land, air, sea, power, and communications infrastructure throughout the country.
“This partnership aims to assist SteelAsia and the steel sector. Together, we contribute to the country’s growth story. Establishing a robust steel industry in the Philippines will facilitate cost-effective infrastructure development and create more job opportunities,” GSIS president and general manager Wick Veloso said at the signing ceremonies last week.
The loan agreement underscores the GSIS commitment to align with the administration’s Build Better More (BBM) initiative, aimed at expanding infrastructure and housing programs and its support to growing the economy.
Recognizing the increasing demand for steel in both public and private infrastructure projects and the insufficient local manufacturing capacity, the three institutions signed and sealed the agreement that marks a significant step towards bridging the gap.
“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,” said DBP President and CEO Michael De Jesus.
“This a very momentous event in terms of the Philippine industrialization. We see the importance of steel manufacturing to be a vital component for nation building. The only way for the country to go up economically is to have a very strong steel manufacturing industry,” said Philippine Business Bank President Rolando Avante.
“The Lemery mill will directly employ 600 personnel and will produce high-strength, high- value steel products to substitute importation of H-beams, large angles, and other shapes and profiles. We can do it cheaper than import,” said SLWI Chairman and Chief Executive Officer Benjamin Yao.
