15/03/2023 – Digital solutions for higher annual production with lower CO2 emissions

SMS modernizes Steel Asia's Calaca steel mill

Steel Asia Manufacturing Corp., the Philippines’ top steel producer, is equipping its steel mill in Calaca city, Batangas, with SMS group-developed digital solutions that will provide a more efficient way to boost output without increasing its carbon footprint.


Benjamin Yao, Chairman and CEO of Steel Asia (left) and Prof. Pino Tesè, Chief Sales Officer India and Asia-Pacific Region of SMS group (right). © SMS Group


From left to right: Sean Andre Sy, COO and Benjamin Yao, Chairman and CEO of Steel Asia, Prof. Pino Tesè, Chief Sales Officer India and Asia-Pacific Region of SMS group and Manish Bhatt, General Manager, SMS Digital, SMS India Private Limited. © SMS Group


Steel Asia signed a performance improvement agreement with SMS group to equip its Calaca steel plant with process automation and digitalization based on latest artificial intelligence to produce green steel. The “EPICA project” (EAF Performance Improvement Partnership for Calaca) utilizes the latest combustion technology and will be employed in the electric arc furnace (EAF). Additionally, the pollution control system will also be upgraded to support this project.

The digital components of this package include solutions based on artificial intelligence and machine learning. The “SMS Data Factory Suite” functions as the central data platform. It collects all plant data, evaluates and forwards these informations to the appropriate systems, for example, to optimise real-time dashboards for KPI and plant monitoring. Here, the “DataXpert” software ties in. The complete platform for developing and managing condition monitoring and expert systems delivers real-time recommendations and notifications. Finally, the “Alarm Manager” will act as an intelligent alarm and maintenance management system to simplify fault analysis thanks to intelligent prioritization, multiple analysis options, linkage of resolution advice and automated notifications.

Data-driven prediction models are indispensable for improving performance and increasing plant availability. By utilizing machine learning algorithms to provide real-time insights into the plant’s condition and process deficiencies, and by predicting machine failures, maintenance measures can be taken proactively, production can be rescheduled and productivity can be increased.

With the leading technology expertise from SMS group, for a cost effective conversion of the existing asset to produce green steel, Steel Asia’s Calaca steel plant will have higher energy efficiency, allowing it to increase its output by 20% and cut emissions because of the new digital solutions. Engineers and technicians at the Steel Asia plant will be given extensive training on the use of all digital technologies.

“Advanced Integrated Solutions is the day’s buzzword, and we are proud to have Calaca as the Philippines’ first steel plant to be equipped with our leading technology,” said Prof. Pino Tesè, Chief Sales Officer, India and Asia Pacific Region of SMS group. The use of renewable energies and efficiency improvements for reduction in greenhouse gas emissions, equally supported by recycling, is a vital factor for a sustainable circular economy.

It also means higher green steel production for the country as Calaca uses 100% renewable energy for steelmaking”, Benjamin Yao, Steel Asia Chairman and CEO added.

Steel Asia operates five other manufacturing plants in Bulacan, Cebu, Davao and Misamis Oriental. It is set to open a seventh plant this year in Compostela town, in Cebu, and increase its output from two million metric tons of steel rebars annually to three million metric tons.

www.sms-group.com | www.steelasia.com