AYALA Land, Inc. (ALI) expects to reduce project costs following an agreement with its steel supplier, SteelAsia Manufacturing Corp., for the recycling and reuse of rebars in its projects.
In a statement on Wednesday, ALI said that the initiative would help itself, its construction unit Makati Development Corp. (MDC), and SteelAsia in reducing their carbon footprint.
“We have found a common ground to pursue a common goal: reduce and recycle waste to protect the environment and fight climate change,” the three entities said in a joint statement.
“At the same time, this partnership will result in lower project costs, push industrialization, and save precious dollars. This is a circular economy in action,” they added.
The rebars will be made from recycled content sourced from scrap generated by ALI projects, aimed at reducing waste and promoting cost efficiency.
ALI stated that rebars account for 50% of its supply chain emissions and 95% of the company’s total footprint. In 2017, the property developer committed to carbon neutrality, and it took a further step in 2022 by targeting net-zero emissions by 2050.
The country mostly exports rebars or scrap steel products for a low value, while importing finished steel products, which results in higher project costs due to importation expenses.
Meanwhile, SteelAsia has been expanding its melt shop operations to replace imports through its six plants in the country. It supplied rebars to ALI, exported rebars to Canada, and provided 100% of the rebars needed to build Cebu’s Cordova Bridge.
“As the construction industry embraces sustainability as a priority, the collaboration between ALI, SteelAsia, and MDC sets a precedent for innovative and collective action,” the companies said.
“By prioritizing circular economy principles and decarbonization efforts, these industry leaders demonstrate a commitment to sustainable development practices with far-reaching implications,” they added. — Justine Irish D. Tabile
