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Capitol Steel Corp. is investing P1.8 billion for a two-phased modernization program of its reinforcing steel bars (rebars) manufacturing plants in Quezon City in anticipation of brisk demand in light of the country’s bullish construction industry.
The company has already filed for registration with the Board of Investments. Once approved, the company, one of the largest rebar manufacturers in the country, would be entitled to three years of income tax holiday and duty-free privilege for its imported capital equipment.
The company has already allocated P800 million for the first phase, which is expected for completion by 2015, while the second phase with a project cost of P1 billion will be on stream by 2018 yet.
The first phase has a capacity of 800,000 metric tons while the second phase has 1.5 million metric tons. Billets are the raw material for rebar manufacturing. Rebars are primarily used for heavy-duty construction applications, particularly to provide added stability for large concrete structures.
The modernization program will remove all bottlenecks of its existing plants and transform the facilities into state of the art facilities.
The modernization program will also position Capitol Steel as a strong industry player. Steel Asia Corp. is still the country''s largest rebar manufacturer.
The country’s total steel market is placed at 6.7 million MT of which the imported steel accounts for 3.67 MMT. Demand is expected to grow between 5 to 7 percent this year from 8 percent last year. Local production of billets grew at a slower 4 percent in 2013. Local rebars production is growing at 4 percent.
Of the total 6.7 MMT steel market, 40 percent has been accounted for by flat products and 60 percent, long products.
Flat products include slabs, hot-rolled coil, cold-rolled coil, coated steel products, tinplate and heavy plate. These are used in automotive, heavy machinery, pipes and tubes, construction, packaging and appliances.
Long products include billets, blooms, rebars, wire rod, sections, rails, sheet piles and drawn wire. The main markets for these products are construction, mechanical engineering, energy and automotive.
Long products produced locally are pipes and tubes as well as some nails and wires from imported wire rods.
金屬展-冶金展-2015廣州巨浪國際金屬暨冶金工業展覽會-亞洲最大金屬冶金展-巨浪展覽-The 16th
China(Guangzhou)Int’l Metal &MetallurgyExhibition
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