SteelAsia enters into deals with two Russian firms

SteelAsia Manufacturing Corp., a leading steel company in the Philippines and the largest manufacturer of rebar in Southeast Asia, has closed deals with two leading Russian companies to sustainably supply billets and transfer skills and technology.

SteelAsia and Evraz have signed a $ 250 million long-term annual contract for 50,000 tonnes of semi-finished steel, also known as billets, for SteelAsia's rolling mills. Billets are the starting material for many steel products, including reinforcing bars.

SteelAsia has also developed a cooperation agreement with JSC Kurganstalmost for the provision of engineering services, as well as training and technology transfer to SteelAsia. Kurganstalmost is a leading Russian manufacturer of steel structures.

“We have found that Russian companies are very reliable business partners,” said Chairman and CEO Benjamin Yao.

He said the long-term billet supply contract would provide the company with a stable source of raw materials, addressing the country's rebar shortage, while technology and skills transfer is taking place in preparation for SteelAsia's diversification in steel structures.

“Our expansion plans are aimed at supporting the country's focus on building massive infrastructure,” Yao said. Since 1998, SteelAsia has bought about 3.24 million tons of billets in Russia for $ 1.23 billion. The company purchased 240,000 tons of billets for $ 93 million in the first quarter of 2017.