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Mar 13, 2024

ALI, SteelAsia, and MDC Form Strategic Alliance for Sustainable Construction

(Left to Right) MDC A+E Design & Sustainability Head Jeremy G. Acosta, Ayala Land Sustainability Head Anna M. Gonzales, Ayala Land Chief Sustainability Officer Robert S. Lao, SteelAsia President and COO Sean Andre Y. Sy, MDC CFO Jose C. Platero, Jr., SteelAsia Chief Sustainability Officer Stephen J. Araneta

27 February 2024, Makati City — Ayala Land Inc. (ALI), SteelAsia Manufacturing and Makati Development Corporation (MDC) signed today a memorandum of understanding for a groundbreaking collaboration advancing circular economy and decarbonization methods in the construction industry.

The agreement solidifies the practice of SteelAsia supplying MDC, the construction arm of ALI, with rebars made from recycled content sourced from scrap generated by ALI projects. This initiative exemplifies a tangible application of circular economy principles, emphasizing waste reduction and cost-efficiency. The approach aims to reduce the carbon footprints of the three companies whose diverse core businesses form a perfect synergy in recycling and reusing rebars.

“We have found a common ground to pursue a common goal: reduce and recycle waste to protect the environment and fight climate change. At the same time, this partnership will result in lower project costs, push industrialization, and save precious dollars. This is circular economy in action”, the group said in a joint statement.

ALI began its decarbonization journey in 2017 when it committed to carbon neutrality for the controllable emissions of its commercial properties. The property developer took it a step further in 2022 when it set a target of net zero emissions in 2050.

Recognizing the significant role of rebars in its supply chain emissions, ALI sees the collaboration with SteelAsia, the Philippines’ pioneer in steel-recycling, as a crucial step towards realizing its net zero goals. Rebars make up about 50 percent of ALI’s supply chain emissions, which in turn is 95 percent of the company’s footprint.

The country exports most of its scraps and imports finished steel products, a low-value business with high import costs that eventually affect project costs.

SteelAsia, the country’s largest steel company and using largely renewable energy, has been expanding its melt shop operations to replace imports and develop a full-fledged local steel industry.

It has six strategically located plants to keep its prices the same all over the country. It supplies rebars to the largest local developer including ALI, has exported to Canada, and provided 100 percent of the rebars to build Cebu’s Cordova Bridge, among others.

As the construction industry embraces sustainability as a priority, the collaboration between ALI, SteelAsia, and MDC sets a precedent for innovative and collective action. By prioritizing circular economy principles and decarbonization efforts, these industry leaders demonstrate a commitment to sustainable development practices with far-reaching implications.

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