SteelAsia Manufacturing Corp., the country’s largest steel producer, is eyeing a potential public offering by 2028, when most of its ongoing expansion projects are expected to be operational and market conditions have stabilized. The move could make SteelAsia the first Filipino-owned heavy industrial manufacturing company to go public.
Company Chairman and CEO Benjamin O. Yao told reporters in a chance interview that the company hopes to proceed with its long-term plan for an initial public offering sometime in 2028.
“Not next year,” Yao said, adding that 2028 is a possibility. However, he noted that there are many factors to consider before pursuing an IPO.
Foremost is the completion of SteelAsia’s PHP75-billion expansion program to develop four more manufacturing facilities in different parts of the country by 2028 as the company also aims to strengthen the country’s supply chain in the steel industry.
The largest budget of PHP30 billion went to building a facility in Candelaria, Quezon while PHP20 billion went to the construction of another plant in Lemery, Batangas.
The company has also allocated PHP17 billion for a facility that will rise in Concepcion, Tarlac, and another PHP7 billion for the manufacturing plant in Davao.
Upon the completion of these projects, SteelAsia’s production capacity would nearly double to 4.8 million tons a year from the current 2.5 million tons.
SteelAsia has long produced reinforcing bars, helping replace imports. Through its Lemery facility, the company will also begin producing heavy steel products that are currently imported entirely. More than 100 repatriated overseas Filipino workers are employed across SteelAsia’s four mills.
“We are builders, we continue to build,” Yao said, emphasizing that he wants the new plants to be fully operational before any IPO takes place. “Get it producing first,” he said.
According to Yao, the country’s first section mill in Lemery, Batangas is expected to begin production ahead of schedule by October or November this year. Other mills are also expected to come on stream before 2028.
“We are accelerating, as I’ve said it’s import substitution,” he added, noting that the company aims to displace a significant portion of steel imports and supply the country’s steel requirements in accordance with government standards. Yao also noted that substandard steel products are mostly concentrated in the provinces.
At present, SteelAsia supplies about 70 percent of the government’s steel requirements for infrastructure projects. The company is also the largest supplier to the private construction sector.
Another consideration in the company’s IPO plans is the impact of Trump-era tariffs and the broader uncertainty they have created in global trade. Yao expressed hope that by 2028, the disruption caused by these tariffs will have largely stabilized. The tariffs have prompted SteelAsia to put its export plans on hold. The company had previously exported 100,000 tons of steel products to Canada.
Still, Yao said exports are not the company’s primary focus, as SteelAsia remains committed to import substitution and meeting domestic demand.
