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Bulacan Works
This facility is home to the first modern rebar mill in the Philippines
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Automated 12-meter walking hearth furnace, for high fuel efficiency, low emission and minimal scale loss.
Automated 18-stand straight line, no twist horizontal-vertical rolling mill configuration for high quality and productivity.
Housingless cartridge rolling stands for quick size changing to minimize down time.
500,000 MTPA Specifications Diameter 10mm 50mm Grade 230 (33), Grade 275 (40), Grade 415 (60), Grade 520 (75) Philippine commercial cut lengths 6 meter to 15 meter Cut and bend service capability
Batangas Works
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Automated 16-stand straight line, no twist horizontal-vertical rolling mill configuration for high quality and productivity.
400,000 MTPA Specifications Diameter 10mm 36mm Grade 230 (33), Grade 275 (40), Grade 415 (60), Grade 520 (75) Philippine commercial cut lengths 6 meter to 15 meter
300,000 MTPA Specifications 120 mm x 120 mm x 6 meters Grade 230 (33), Grade 275 (40), Grade 415 (60)
Cebu Works
Only operating modern rebar mill facility in the Visayas (Operational in 2010)
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Housingless cartridge rolling stands for quick size changing to minimize down time.
Singapore. Wholly-owned subsidiary of Tata Steel, NatSteel Holdings Ltd., has appointed a new Chief Executive Officer, Vivek Madan Kamra. The new CEO describes
himself as informal, energetic and execution-oriented. Kamra plans to fulfill Tata Steels ambition for NatSteel to become a five million metric ton rebar and wire rod producer, and a world-class technically advanced downstream player. In doing so, NatSteel will start by making all businesses lean and at the same time, robust. Simply put: Doing more with the same resources. Kamra also stated that Natsteel needs to invest in areas where the company can further improve their efficiencies and expand market base.
Kamra sees NatSteel becoming a savvy Marketing Organization- one that drives a perception that it delivers what it promises. Also, Kamra sees Natsteel being very lean on inventory, while running full out to attain Operational Excellence.
Kamra stated that Natsteels value system should be Always Be Humble But Ambitious.
Natsteel Holdings Ltd is based in Singapore and has overseas operations in Philippines, China, Thailand, Vietnam and Australia. In the Philippines it owns 40% of the SteelAsia Manufacturing Corporation.
Construction Boom!
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Shrugging off the global downtrend of the leading economies, the Philippines has much to be optimistic for. Coming off strong 1st and 2nd quarter GDP growth of 7.3% and 7.9% respectively, the common sentiment from economic forecasters and real estate developers is that the country is at the early stages of a construction boom.
Dr. Victor Abola, Executive Director of the University of Asia and the Pacific Capital Markets Research noted that demand for housing would continue to remain strong owing to the fact that only 250 thousand housing units are produced each year to fill a 3 million housing backlog.
Manolito Madrasto, Executive Director of the Philippine Constructors Association claimed the construction industry could reach double digit growth. Figures from the National Statistics office seem to bolster this, as 1st Q 2009-2010 quarter on quarter showed a 130% growth for non-residential construction and a 27% growth for residential construction.
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X X X X X X X X Cebu Works starts operation Product Standards New CEO for NatSteel Indra completes ICT plan for SteelAsia Davao Works Kick-off PISI President End of 3rd quarter price softening not seen to affect demand
Furthermore the Board of Investments noted a 318% increase in investment approvals for the 1st half of 2010, and a total aggregate figure that has already surpassed the entire year total of 2009.
While the countys leading developers and construction companies, SM Group, Megaworld, DMCI, Ayala Group have remained aggressive in both residential and non-residential development for the past 4 years, the good news comes from the public sector. Infrastructure and other public works projects have increased by 39% over 2009.Recently the Aquino government announced it would prioritize infrastructure development through PPPs (Public-Private Partnerships). The government has lined up several land and air infrastructure, as well as power projects, to help sustain our strong economic growth.
SteelAsia meanwhile estimates that rebar demand for year 2011 will hit 1.9 million metric tons and continue to grow at a rapid rate over the next 3 years. This 2011 forecast is twice the actual consumption of rebars during the height of the Asian currency crisis but still far behind the demand of its South East Asian neighbors such as Vietnam, which consumes over 4 million tons in rebar annually. The supply contract of pre-fabricated rebar- cut & bend to one of the countrys most significant infrastructure projects, the Skyway Stage 2 is nearing completion. Stage2 is a 6.88km 6 lane elevated roadway from Bicutan to Alabang, which required around 25,000 metric tons of rebar from SteelAsia. The project - which is expected to open in May 2011, is one more fulfillment of SteelAsias commitment to play a role in national development using cutting edge steel technologies.
Part of rebar volume supplied by SteelAsia, was a separate agreement for 7,800 metric tons of pre-fabricated rebar or what SteelAsia calls offsite fabricated or cut & bend rebar. Already, 95% of this requirement has been delivered. A balance of 450 metric tons remains.
Assured already of the highest standards of quality, general contractor DM Consunji throughout the supply maintained a very strict delivery schedule that challenged the planners and operators of SteelAsias F1 fabrication) department. Though clearly up to the task, the projects demanding timetable further improved SteelAsias capabilities for projects to come.
The Skyway Stage 2 will add to a growing list of infrastructure projects supplied with SteelAsias Cut & Bend rebar- a list that includes the NLEX Tollway, LRT Line 2, Star Tollway, San Roque Dam, Mariveles Jetty, NAIA Terminal 3 and more.
The Cebu Works rolling mill of SteelAsia begins rebar rolling operations as the only rebar rolling mill in Visayas. Located in Carcar Cebu, the facility which had been mothballed in the late 90s was acquired from the AC Steel Industries last year. Since then,
SteelAsia began a comprehensive modernization and expansion program, to bring the facility up to world-class standards in productivity and efficiency.
Among many activities in the modernization program, notable are two key upgrades that were recently commissioned.
First, the manual operation was replaced with a stateof-the-art process logic control system, giving the Cebu Works Level 2 automation.
Second, a tempcore quenching system was installed. This quenching system is a technology that upgrades the physical characteristics of the bar to higher levels of tensile and yield strength, by altering the steel micro-structure.
But the most significant feature of the Cebu mill is its location. It is the only rebar mill operating in the Visayas. Prior to its re-commissioning, Visayas buyers had to purchase rebars from Manila (where today 95% of rebar manufacturing capacity is installed). This entailed a higher cost for the Visayas buyer, due to shipping freight charges and port charges at both origin and destination. With a Cebu based mill, buyers procure direct from the stock at the mill without the added logistic costs.
The mill is also expected to generate employment in and around Carcar, trigger economic development among its community and give tax revenues for the local and national government.
Already, ramp up of production output has begun. From its original rated capacity of 200,000 metric ton per annum, SteelAsias modernization program for the Cebu Works will have it operating at a 300,000 metric ton per annum capacity, with higher yields, less waste and emissions and better quality.
Product Standards
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Rebars
Rebars are used for general construction to give strength to concrete structures and are required by the Philippine Building Code for all loadbearing construction. Without rebar reinforcement, buildings and other concrete structures would not be able to remain upright even under normal circumstances, and much less against the natural elements.
Wire Rod
Wire rods are rolled product, wound into coils and transported in this form. Wire rods are used for many different products such as wire ropes, barbed wire, wire mesh and nails, springs, welded wire mesh, and rods of 7mm or less. Though versatile, products made from wire rods are not meant to be load-bearing in nature.
Wire rods are made from billets with lower carbon (below 0.12%) and manganese content (below 0.40%).
With the relatively low carbon and manganese, the PNS 49 minimum strength requirement for rebars, of 230 megapascals (MPA) for yield strength and 390 megapascals (MPA) for tensile strength can not be attained. Structures that have substituted wire rods for rebars are most certainly at high risk of collapse from earthquakes such as the
recent Indonesian tragedy, and even minor weather elements or simply structural failure from its own weight.
Situation
Unscrupulous steel traders and manufacturers have been importing wire rods with the intent of selling them as rebars after straightening and adding lugs. Despite the clear danger to the citizenry of this substandard building material, the unsafe practice prevails because of three reasons: Firstly, importers take advantage of the lower 1% tariff on wire rods compared to the 7% tariff of rebars and 3% tariff on steel billets. Secondly, wire rods are more easily under-declared in value or misdeclared, as they are a less commonly imported steel product, and are imported in containers. In the recent few years there has been a documented surge in the importation of wire rods, without proof of an increase in demand for wire rod based product. Furthermore, customs documents all show that many of the wire rods were in fact under-valued in declaration.
Impact
The obvious grave endangerment of the public with unsafe buildings, bridges and homes, is underscored by the fact that our country is earthquake and typhoon prone. Secondly there are immediate and lasting economic repercussions.
Unfair trade practices by fly-by-night operators have slowly been killing our industry, and sabotaging our countrys economic development. The past ten years have seen many steel bar companies and mills close down as the already thin margins erode further due to low quality and underspecified steel product smuggled into the country through our many ports of entry. A weakened or defunct steel industry will see our country totally dependent on imported steel product, possibly of unreliable quality and delivery schedule. This will translate into delay, significantly higher costs of construction, and buildings of poor quality.
Also, the higher cost of construction, poor building and infrastructure and unsafe environment will be detrimental to foreign and domestic economic investment. A developing country such as the Philippines will be hard-pressed to attract investment without its own or with a weak domestic steel industry. Furthermore, this technical smuggling of substandard material has deprived our governments coffers of billions in internal revenue from lower duties, under-valuation.
Conclusion
Clearly the issue of the smuggling and misuse of wire rods needs to be addressed at the highest levels of government and law enforcement, with the greatest of vigilance. This cheating of the consumer, endangerment of the citizenry and economic sabotage is a
matter that the legitimate steel industry will persistently defend against. However, without equal commitment and political will by the government to eradicate this despicable practice, all efforts of the legitimate steel industry will be to naught.
Singapore. Wholly-owned subsidiary of Tata Steel, NatSteel Holdings Ltd., has appointed a new Chief Executive Officer, Vivek Madan Kamra. The new CEO describes himself as informal, energetic and execution-oriented. Kamra plans to fulfill Tata Steels ambition for NatSteel to become a five million metric ton rebar and wire rod producer, and a world-class technically advanced downstream player. In doing so, NatSteel will start by making all businesses lean and at the same time, robust. Simply put: Doing more with the same resources. Kamra also stated that Natsteel needs to invest in areas where the company can further improve their efficiencies and expand market base.
Kamra sees NatSteel becoming a savvy Marketing Organization- one that drives a perception that it delivers what it promises. Also, Kamra sees Natsteel being very lean on inventory, while running full out to attain Operational Excellence.
Kamra stated that Natsteels value system should be Always Be Humble But Ambitious.
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Global I.T. services provider Indra recently completed a 5-year Information and Communication Technology (I.C.T.) Plan for SteelAsia. Through their local office, Indra Philippines Inc., an engagement was made for a comprehensive study of SteelAsias information and communication technology capabilities. The findings were analyzed against the companys own strategic plans, enabling Indra to craft a 5-year I.C.T. roadmap.
SteelAsia President Benjamin Yao has been the driver behind efforts to strengthen I.T. capabilities within the company. Yao said that the availability and unimpeded flow of accurate, real-time information is critical for operations that are growing in both scale and complexity.
With the approval of the I.C.T. Plan in early September, implementation is already underway.
In August 2010, Mr. Benjamin Yao, President and CEO of SteelAsia Manufacturing Corporation, formally launched the companys new project the Davao Works. This project will be the single largest and most modern steel bar mill in the country with an annual capacity of 400,000 metric tons.
In a dinner with the project leads, contractors and a few other SteelAsia executives, Mr. Yao said that through the installation of a new rolling mill in Region 11, SteelAsia will create rebar availability to support Mindanao development. Equally important will be the fact that Mindanao buyers will enjoy cheaper steel by avoiding shipping freight and port costs, when transporting steel from Manila ports.
The Davao Works is designed for high-speed manufacturing of PNS 49 (10mm to 36mm) rebars.
The mill will also have the unique capability of producing PNS 211 (6mm to 8mm) from billets rather than wire rods, ensuring therefore higher tensile strength.
The Davao Works also addresses social responsibility issues. Impact on the environment associated with diesel consumption of steel shipments are reduced with Mindanao having its own steel bar supply. Also, by using more energy efficient technologies carbon footprint impact will be significantly reduced. Moreover, the facility will create jobs for hundreds of families and generate much needed internal revenue for the local and national government.
The project, already underway will have the mill operational by 2012.
In MW Supply Demand+Res
Population Density: 221 persons per sq km (Phil. Population density: 307 sq km)
Mineral Deposits: Lead, zinc, ore, iron, copper, chromite, magnetite, gold Mindanao Power Supply and Demand Outlook
The countrys steel industry association, the Philippine Iron and Steel Institute (PISI) recently elected Roberto Cola as President. Cola, who is currently SteelAsias Vice President for Industry Affairs has been the companys spokesman and action man for advocacies to protect consumer welfare and fair business practices since 1996. A steel industry veteran of more than 30 years, Cola has been relied on by SteelAsia and industry associations for his technical knowledge on metallurgy, steel manufacturing and governing policies for steel.
Cola plans to revitalize the PISI in fulfilling its mission to help bring about sustainable growth and a globally competitive domestic iron and steel industry. To achieve this, Dods plans to expand PISIs roster of members and train and enhance the knowledge base of younger alternates in their activities and advocacies. He also intends to strengthen the PISI Secretariat office and networks with other industry associations.
Moreover, Cola feels that the main concerns that need to be tackled during his administration are the tariff distortions in lieu of the new Free Trade Agreement, unfair trade competition (i.e. smuggling) and products standards development and implementation.
After a generally flat August and early September, steel prices softened towards the end of the 3rd quarter to $560 down by 5% from its peak of $585. This downward trend was expected to continue into October.
Despite soft global steel prices, domestic rebar consumption appeared unaffected. Demand has remained firm on the strength of infrastructure development and residential construction from the countrys top real estate developers. These minor adjustments in rebar prices are not seen to impact significantly project costs and timelines.
Also, falling prices are not expected to be prolonged or drastic despite weak global demand for steel, as there is upward pressure of high costs of inputs. Moreover, the 4th quarter is traditionally a strong buying season for Asia, reports Steel Business Briefing (SBB). This is expected to further drive prices back up toward the end of the year.