Strategic Sanction Secures Swift Steel Scheme Success

Candelaria Steel Inc., a subsidiary of SteelAsia Manufacturing Corporation, received Green Lane Certification from the Board of Investments on July 3, 2025. This strategic approval, granted under Executive Order 18 signed by President Ferdinand Marcos Jr. in February 2024, is designed to fast-track vital permits & resolve strategic investment concerns. Green lane status recognises projects with major economic impact, complex engineering, & clear alignment with the Philippine Development Plan.

The ₱30-billion ($508 million) investment positions the project as a crucial step toward modernising the country’s steel sector.

Sustainable Synergies Strengthen Scrap Steel Strategy

Candelaria Steel’s new-generation scrap recycling mini-mill will use Electric Arc Furnace technology. This process, unlike traditional blast furnaces, uses locally sourced recycled scrap metal instead of importing raw iron ore. According to SteelAsia, this shift cuts CO₂ emissions by a minimum of 70%, directly supporting national & global climate goals.

The recycling method reflects a practical commitment to environmental responsibility, aligning steel production with sustainability trends sweeping across Southeast Asia.

Domestic Development Diminishes Dependence on Distant Deliveries

Currently, the Philippines relies heavily on imported heavy steel sections, adding 3 to 4 months to production timelines. The Candelaria plant, once operational by July 2027, will produce up to one million metric tons of heavy steel sections each year, including H-beams, I-beams, angles, channels, universal mill plates, & sheet piles.

This domestic supply will help meet demand faster, reduce import-related delays, & improve the competitiveness of local industries such as shipbuilding, construction, & automotive manufacturing.

Employment Expansion Empowers Economic Ecosystem

The plant is expected to create around 655 direct in-plant jobs & about 3,000 indirect jobs, according to the BOI. This boost in employment is projected to energise local economic activity, strengthen regional supply chains, & provide opportunities for allied industries.

SteelAsia’s plan to use local scrap supports a circular economy, turning potential waste into valuable raw material.

Complementary Construction Completes Coherent Capacity Cluster

The new Candelaria plant complements SteelAsia’s medium section mill under construction in Lemery, Batangas, which also has Green Lane Certification. Together, these facilities aim to close critical gaps in local steel production, replacing imports with locally produced medium & heavy sections.

These projects plan to supply major infrastructure initiatives like the Bataan-Cavite Interlink Bridge Project, adding resilience & reliability to national construction pipelines.

Industrial Infrastructure Inspires Investment & Innovation

The BOI highlighted that the steel industry remains a cornerstone of Philippine industrialisation, supporting sectors like electronics, shipbuilding, automotive, packaging, & large-scale infrastructure. Candelaria Steel’s facility will introduce state-of-the-art engineering, complex processes, & advanced design standards, positioning the Philippines as a competitive steel producer within Southeast Asia.

Strategic investments like this help build a strong domestic foundation that fuels future growth & innovation.

Policy Priorities Propel Progressive Production Plans

President Marcos Jr.’s Executive Order 18 mandated green lanes to speed up processing for projects that align with national priorities, bring significant capital, & offer high economic & environmental value. The BOI’s swift approval for Candelaria Steel signals the government’s intention to reduce bureaucratic barriers for transformative industries.

By supporting local steelmakers with streamlined permits, the administration hopes to attract similar investments & advance national development goals.

Key Takeaways:

• Candelaria Steel’s ₱30-billion ($508 million) recycling mill got BOI green lane status to start operations by July 2027.

• The plant will cut CO₂ emissions by at least 70% using Electric Arc Furnace technology & local scrap metal.

• It will produce up to one million metric tons annually, reduce import reliance, & create thousands of jobs.