MANILA -- San Miguel, the Philippines' largest listed company by revenue, on Monday said it is considering $33.6 billion worth of new projects as it continues its diversification push.
The company is reviewing the viability of a $15 billion fully integrated steel mill, a new $15 billion oil refinery capable of producing 250,000 barrels per day, and a $3.6 billion power plant that can generate 1,200 megawatts of electricity using "ocean tide technology," Chief Financial Officer Ferdinand Constantino told the stock exchange, confirming a local report.
The steel mill could become a new segment in San Miguel's diversified portfolio, which includes traditional assets in the food, beverage and packaging businesses, as well as new businesses in oil refining and sales, power generation, road infrastructure, airports, railway, banking and mining.
San Miguel's stock exchange filing did not provide details for the steel mill plan, but the new project is five times more expensive than the $3 billion investment company President Ramon Ang announced in 2014.
If the plan is pursued, San Miguel would become the first one-stop shop for steel production in the Philippines, where the metal has largely been made by reprocessing scrap. About 70% of the finished steel products used in the Philippines are imported, mainly from China.
Demand for steel is expected to spike in the domestic market, as the government of President Rodrigo Duterte plans to increase infrastructure spending to 7.4% of gross domestic product by 2022, nearly double the ratio in 2015.
San Miguel, which began diversifying into heavier industries a decade ago, itself is a heavy steel user. The company is undertaking multibillion peso road projects, a $1.5 billion railway, and is pitching a new $14 billion airport for Manila, among other infrastructure projects. Ang also has personal investments in cement production.