Dr. Carlo Arcilla, Dr. Eric Paringit and Dr. Agustin Fudolig
Article c/o Business Mirror
Story & photos by Stephanie Tumampos
The current administration’s “Build, Build, Build” (BBB) program envisions a Philippines with proper infrastructure to enhance economic capability. With billions of dollars poured in this program, the country is expected to consume an increased volume of iron and steel in the coming years.
At the First Quarter Mining Lecture Series held by the Department of Science and Technology’s Philippine Council for Industry, Energy and Emerging Technology Research and Development (DOST-PCIEERD) on March 27 in Manila, various government officials, stakeholders, researchers, scientists and engineers discussed how the country can produce iron and steel, and supply the demand by creating a road map that could empower and strengthen the sector.
According to the Board of Investments (BOI), the apparent steel consumption of the country in 2018 is about 10.55 million tons with an ASP forecast of 20 million tons in 2030. While the country’s program is very promising, the program can help local investors in iron and steel production if more iron and steel from local supply can be added instead of importing them mostly from China.
On another note, the Philippines’s steel demand is composed of five essential output products. Eighty-one percent of this demand is dedicated to construction, 9 percent for light and heavy fabrication, 5 percent for ship building, 4 percent for packaging, and 1 percent for other uses.
Vulnerability of steel importation
The BOI’s mission for the Philippine Iron and Steel Roadmap is “to contribute to the country’s sustainable development by manufacturing world-class products for industry and society.” Its vision is that by 2030 “the Philippine iron and steel industry sees itself as a majority producer of quality steel products for domestic users.”
According to DOST-PCIEERD’s Director Eric Paringit, the Philippines is dependent on importation of iron and steel, and have a very high demand, hence, “the industry is very volatile or very unstable.”
Paringit told the BusinessMirror that whatever happens to the world market, “we are vulnerable to external forces or events that could happen, so we want to stabilize the market by making sure that we have a local industry that could support the development goals we have for the country.”
He said there is no doubt that we have more raw resources or materials than what we need, but “the basic, intermediate and end processing of the steel industry is absent in the country.”
He explained that compared to its neighbors, the Philippines is “the only country that has no direct iron and steel processing plant.”
Paringit said he wishes to establish a concrete plan to put up steel plant in the next five years. The government’s former steel producer, the National Steel Corp. was then privatized, but with today’s pool of human skills and resource, “it’s not a matter of ‘if,’ it’s a matter of when we are going to put this up because we really need to propel,” Paringit explained.
Partial local steel production
In the research by Dr. Agustin Fudolig, deputy executive director of the Metals Industry Research and Development Center, and Engr. Juancho Pablo Calvez, chief metallurgist of Mines and Geosciences Bureau, titled, “Technical and Economic Feasibility Study to Determine the Most Suitable Ironmaking Technology for Value Adding of Philippine Magnetite Resources,” they saw a great potential in the country in terms of local steel production.
In an interview with the BusinessMirror, Fudolig explained that the only problem is economics.
“The problem is that some sectors are wary about the production volume in China because it is so huge that they are now exporting and we are buying from them,” Fudolig said. “It’s going to be a comparison between importing it or producing it.”
At the moment, Fudolig said importing steel is easier because the local industry could not compete anymore. However, he does not eliminate the fact that we have to be self-sufficient, which supported Paringit’s statement.
“Partial self-sufficiency is important,” Fudolig told the BusinessMirror. “If we put up iron and steel manufacturing, we will have partial self sufficiency, which is important because if our source at present suddenly stops selling to us, we still have a local source.”
He added that the country does not necessarily need to produce 100 percent, but could potentially produce 30 percent to 50 percent of the requirements and then import the rest.
Considering the 1 million tons per year consumption as used in Fudolig’s study, with respect to the country’s raw material deposits of magnetite, which is about 2 billion tons, he said “your steel-production plant would last a hundred years.”
A plant would need 1.7 million tons of raw magnetite to produce 1 million tons of steel. “In terms of sustainability, I am confident we can achieve this,” Fudolig added.
Power source
The demand for power will definitely grow. According to the BOI, the country’s ASP will be 20 million tons by 2030. But if the country aims to decrease steel importation and increase local production, the country must also have a stable and cheaper power source.
Paringit explained that “based on the premise that you need something like 10 percent or 20 percent of the requirements to put up a steel processing plant, you would really need a stable and cheap source of power.”
He added that one cannot melt steel if there is no enough power source. “What’s being argued is if we need another source of energy to also power the steel industry,” he said.
This is where nuclear energy comes in. The existing but unused Bataan Nuclear Power Plant (BNPP) has been a subject of debate over decades because of alleged impacts to the environment.
But Dr. Carlo Arcilla, director of the Philippine Nuclear Research Institute, a nuclear power plant like BNPP has zero carbon emission and that a solution to nuclear waste disposal can be put in Philippine islands in the West Philippine Sea.
“The cost of nuclear power is at least half of the normal price, but it will depend on how much is in the mix of source of power,” Arcilla told the BusinessMirror. “With a nuclear power plant, we can have uninterrupted power for 18 months.”
Arcilla noted that nuclear power can be added to the normal power source in the country, such as coal. “So the whole average will be brought down, and that’s what’s definitely important.”
Fudolig in his study estimated a P5.50 per kilowatt hour price of electricity used for steel processing plants. Other studies also showed that it can be further reduced to P3.50 per kilowatt hour if electricity would come from Leyte’s geothermal plant. “Sensitivity in power cost would improve the return of investment of plants.”
If nuclear power will be added in the power pipeline, Fudolig told the BusinessMirror that “nuclear power can help in reducing the cost more from P3.50 to, say, P1.50 or P2 per kilowatt hour.”
Arcilla gave assurance that if BNPP is reopened it will be safe.
Of course, there are concerns on the issue of reopening BNPP. For Paringit, the country needs to rebuild competency and human resources to operate it.
“We are supporting the capacity building efforts and the R&D toward ensuring that we will be able to operate it safely, sustainably and reliably,” he said.
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Tagum City, Davao del Norte – It was an event that began with a happy note, and ended with a lot of gratitude and remarkable success. The Department of Science and Technology-Metals Industry Research and Development Center (DOST-MIRDC) trooped to Davao in the morning of April 23, 2018 for the conduct of the ‘MIRDC Goes to the Countryside,’ a three-day event to be held in Tagum City, the capital of Davao del Norte.
The activity is conducted with the goal of extending technical assistance to the micro, small, and medium enterprises involved in the metals, engineering, and allied industries, as well as to the members of the academe in the countryside. Technical assistance is carried out through the conduct of the four-in-one activities: training, consultancy, technology exhibit, and skills competition. In Tagum City, the event is entitled, ‘S&T Caravan for the Metals and Engineering Industries’ and s held as a joint effort of the DOST-MIRDC, DOST XI (Provincial Science and Technology Centers of Davao del Norte and Compostela Valley), the Philippine Welding Society (PWS), LGU-Tagum City, LGU-Kapalong, PLGU-Davao del Norte, PLGU-Compostela Valley, the Department of Trade and Industry (DTI)-Davao del Norte, the University of Southeastern Philippines (USEP)-Tagum, the Technical Education and Skills Development Authority (TESDA)-Davao del Norte, Center Industrial Supply Corporation Davao, and the 1st Congressional District Office of Davao del Norte.
Below are some of the major activities that took place during this event.
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From L to R: Team MIRDC makes a courtesy call to the office of Dr. Anthony C. Sales, Regional Director of DOST XI; MIRDC delegates join the meeting of the Metalworking Industries Association of the Philippines-Davao Chapter (MIAP-Davao); MIRDC and MIAP at Beta Spring, Davao City, on 23 April 2018. |
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MIRDC and PWS delegates hold a meeting with the DOST Provincial Science and Technology Center (PSTC) on 24 April 2018 to go over the program of the three-day event. The PWS is represented by its Executive Director, Mr. Fernando Opeda |
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Clockwise from top left: Engr. Reynaldo L. Dela Cruz, Jr., Chief of the Center’s Industrial Training Section and President of the Philippine Welding Society (PWS), presents the rationale of the MIRDC Goes to the Countryside during the Opening Ceremonies; Engr. Dela Cruz is among the resource persons during the Press Conference; Fundamentals of Production Planning and Control is conducted by Mr. Osric Primo Bern Quibot; Shielded Metal Arc Welding training is conducted by Engr. Dela Cruz; and the technology exhibit is handled by the Technlogy Information and Promotion Section (TIPS) led by its Chief, Ms. Lina B. Afable. |
Engr. Reynaldo L. Dela Cruz Jr. (L) and Engr. Ma. Girlie M. Millo (R) conduct the Metals Identification and Selection Seminar on April 26, 2018. |
Engr. Edilbert M. dela Peňa (L), with technical assistance from Mr. Alfredo B. Anchorez, conducts the Metal Finishing Techniques seminar. |
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Ms. Alma C. Dupagan (L) and Dr. Concesa T. Cortez (R) handle the seminar on Fundamentals of Product Costing. |
Mr. Osric Primo Bern Quibot (L) conducts the seminar on Occupational Safety for Metalworking Industry, while the staff from the Technology Information and Promotion Section present MIRDC technologies during the exhibit (R). |
On the third and last day of the event, team MIRDC continues to carry out the remaining activities. Clockwise from top left: Engr. dela Peňa conducts the Heat Treatment of Steels seminar; Engr. Dela Peňa and Engr. Benjamin V. Estrellado, Senior Science Research Specialist, DOST XI, conduct a demonstration; Ms. Jocelyn C. Dime conducts the Value Analysis/Value Engineering I seminar; and Engr. Dela Cruz conducts the Plasma Cutting demonstration. |
During the brief stay of team MIRDC in Tagum City, the Technology Advisory and Business Development Section (TABDS) led by its Chief, Engr. Ma. Girlie M. Millo, was able to meet with officials of the local government unit of Tagum City, particularly the City Planning and Development Office and the City Agriculture Office to discuss appropriate technologies for the productivity improvement of the agriculture sector, to identify necessary equipment to support the R&D activities, and IP application of their office’s R&D outputs, among others. The TABDS was also able to personally visit some private enterprises for consultancy: Apiary Farm, LYR Marketing and Furniture Center, and Belmerit Welding Shop. The said companies are very proactive in their pursuit of improving the business, and the Center is more than willing to extend technical assistance. Their common requirement is about availing S&T intervention regarding process improvement, technology upgrading, and establishment of QMS. The Center is thankful to have the opportunity to be in direct contact with the M&E industries in Tagum City, and is looking forward to positive outcomes
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Team MIRDC meets with the City Planning and Development Office of Tagum City (L) and Belmerit Welding Shop (R) for consultancy. |
The most exciting part of the three-day event is always the Skills Competition where participants are given the opportunity to show off their skills and express their creativity in the field of welding. The Skills Competition was held on April 27, 2018.
Shortly after all the seminars and the Skills Competition were finished, the three-day event was finally concluded with a brief Closing Program.
The Grand Winner for the female category is Ms. Ruth Cheel B. Tulo, while for the male category the Grand Winner is Mr. John Mar Siodora.
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Skills Competition Brought Out the Best in Tagum City’s Finest Welders
The announcement was posted by the DOST XI in their website on April 10, 2018. It was followed by a post in DOST XI’s Facebook page on April 11, 2018. Also, the DOST XI went full force in sending out invitations to schools and enterprises. Through the wide reach of social media and DOST XI’s assertive promotions, word about the upcoming Welding Skills Competition spread and reached target participants not only in Tagum, but in nearby areas as well.
The male and female categories were opened to interested applicants, but the announcement stated very clearly that only six (6) participants will be enlisted for each category. Many interested parties sent their application but most of them, unfortunately due to the limited slots, did not make it to the final list.
Up until the present time, welding is a male-dominated field. It is no surprise that a lot of males responded to the invitation for participants to the Welding Skills Competition. Making it to the final list of contestants are: (1) Ruel C. Navales, 26 years old, from Tagum City; (2) Rovelon C. Salga, 44 years old, from Tagum City; (3) Cornelio A. Ruz, Jr., 34 years old, from San Isidro, Davao del Norte; (4) Dennis O. Orcullo, 35 years old, from Tagum City; (5) Bernie B. Galupo, 28 years old, from Tagum City; and (6) John Mar P. Siodora, 31 years old, from Compostela Valley.
On the day of the Skills Competition, the New City Hall of Tagum City was abuzz with activities for the much-awaited event.
Mr. Fernando Opeda, Executive Director of the Philippine Welding Society (PWS), gives an orientation to the participants outside the lobby of Tagum New City Hall a few minutes before the competition proper.
The gentlemen in action at the Welding Skills Competition.
The audience watch eagerly as the contestants work on the task at hand.
What made the Welding Skills Competition in Tagum City very interesting is the response of female welders. It turned out that welding in this part of the country is not only for the males, but is also a career loved by females as well. Interesting as their being welders are their unique stories of why they joined the contest.
Group photo before the female welders don their PPEs for the Welding Skills Competition. (L to R) Engr. Reynaldo L. dela Cruz, Jr., Chief of the DOST-MIRDC’s Industrial Training Section and President of the Philippine Welding Society (PWS); Liezyl Darilay; Minnie Ellivera; Ruth Cheel Tulo; Nely Siarot; Helen Dal; Mary Jean Dumalag; and Mr. Fernando Openda, Executive Director of the PWS.
Meet the six participants in the female category of the Welding Skills Competition:
Mary Jean V. Dumalag, 40 y/o |
Minnie P. Ellivera, 40 y/o |
Helen L. Dal, 31 y/o |
Liezyl L. Darilay, 32 y/o |
Ruth Cheel B. Tulo, 30 y/o |
Nely M. Siarot, 30 y/o |
All six participants heard about the Welding Skills Competition through the schools where they are working as welding trainers and assessors, except for Helen who is currently employed in a private welding shop in Compostela Valley. A friend informed Helen about the announcement posted in fb, and encouraged her to join. Jean, Minnie, Liezyl, and Nely registered immediately after hearing about the announcement. When she registered, Ruth Cheel did not make it because all slots were filled up. She decided to be at the competition venue anyway to cheer for Mary Jean, who is a colleague at work.
They all love welding. Helen used to consider it as a pastime only, but later learned to really love the practice of welding. Her welding skills are well-known in their neighborhood. Welding is her way of realizing the dream of her father. It is her bread and butter, and working as a welder enables her to support her five (5) children. Mary Jean is a welding trainer/assessor. She says she is fond of doing work that are typically for the males. She is really looking for a skills competition to join in, because she wants to experience how it is to join a contest. Nely says she came from the garments industry, but later shifted to welding. ‘Mahal na mahal ko ang welding,’ according to her. She is really interested to learn and improve her welding skills. Minnie traveled from Davao City to Tagum City to personally submit her application. Joining is her way of leveling up her skills in welding. She says the messages of encouragement posted on social media is enough recognition and makes her feel very proud to be in this profession. Ruth Cheel was at the venue to support Mary Jean. It was only on the morning of April 27, the Skills Competition proper, that she was told that she was one of the competitors because one participant backed out at the last minute. Liezyl is a daughter of a welder. As a young child, she would always watch her father while he was working. She got interested but her father would tell her not to come near because she might get hurt. She seems to be the only child interested in what her father was doing. When he passed away, all the welding equipment were left unused in their home. That is when she decided to learn how to weld and to finally do what she has always dreamed of doing.
The competition proper for the female category started in the morning of Friday, April 27. It was over after an hour and a half. The male category was next. It was completed a little after lunch time. The announcement of winners was done during the Closing Ceremonies, which started at 2 pm.
Ruth Cheel and John Mar are declared grand winners of the female and male categories, respectively. Prior to the competition, both were asked what they think are the advantages should they win. Ruth Cheel said that it is not about winning. To her, joining the competition is the best way of improving her craft and encouraging her students to also keep learning and improving. John Mar, on the other hand, is an NC II certificate holder already, and aspires to earn another certification. To him, winning is his chance to earn another certificate in welding.
Appreciation and recognition of one’s skills open limitless possibilities. Ruth Cheel and John Mar earned the S&T community of Tagum’s respect and admiration. The applause of the crowd when their names were announced as winners may have lasted for a few minutes only, but the boost in confidence, affirmation of their abilities in the practice of welding, and the passion to improve the craft and further influence other people to keep on aiming higher will surely go a long way.
DOST USEC. GUEVARA JOINS THE HYBRID ELECTRIC TRAIN PROJECT TEAM IN ITS CRUSH LOAD TESTING
Usec. Rowena Cristina L. Guevara, DOST Undersecretary for Research and Development, visits the Hybrid Electric Train (HET) project team at the Philippine National Railways’ (PNR) Mamatid Station on Tuesday morning, 09 January 2018. Usec. Guevara was joined by officials and personnel of the DOST-Metals Industry Research and Development Center (DOST-MIRDC) led by its Executive Director, Engr. Robert O. Dizon, and some representatives from the DOST-Philippine Council for Industry, Energy, and Emerging Technology Research and Development (DOST-PCIEERD) and the DOST-Science and Technology Information Institute (DOST-STII).
Walking towards the first passenger coach of the HET are DOST-MIRDC Executive Director Robert O. Dizon (L), Dr. Rowena Cristina L. Guevara, DOST USec for Research and Development (center), and HET project leader, Engr. Pablo Q. Acuin (R).
Walking towards the first passenger coach of the HET are DOST-MIRDC Executive Director Robert O. Dizon (L), Dr. Rowena Cristina L. Guevara, DOST USec for Research and Development (center), and HET project leader, Engr. Pablo Q. Acuin (R).
USec. Guevara alights from the HET after joining the train's crush load testing.
It's a wrap! Team DOST-MIRDC joins USec. Guevara after a successful demo ride/crush load test.
The HET was launched to the media and the public in June 2016. Implemented with the goal of augmenting the number of trainsets currently being used by the PNR, the HET project is envisioned to come up with an R&D output that will serve as a long-term solution to heavy traffic congestions in many parts of the country, particularly in Luzon. Moreover, adoption and wide-scale commercialization of the HET technology will open doors of limitless opportunities for the local manufacturing industry. With the HET, the country will build capabilities, enhance manufacturing productivity and competitiveness, and enjoy optimum economic benefits. Truly win-win for every Filipino citizen.
A series of tests is still scheduled to be conducted for the HET. Repair and modification activities will be done this year. This is to complete project deliverables, as well as to address recommendations from the value engineering/value analysis conducted by the Systra Philippines, Inc. on the HET. All these are in the pipeline as the HET is being prepared for the necessary certification.