Union Galvasteel Corporation

Location: Calamba, Laguna

Date Visited: January 22, 2015

I. INTRODUCTION
Vision: To be the preferred supplier of high quality building materials and services to the construction
industry
Mission: We shall supply products and services that are of distinct quality to create value and
satisfaction to our customers.
We shall continuously improve on the quality of our products and services through innovations and
creativity.
We shall run our business in accordance with the highest ethical standards of integrity, trust and
professionalism.
We shall provide for a working environment that will promote the safety and welfare of our employees,
uplift their well being and create an atmosphere for the continuous development of skills, enhance
productivity and promote opportunities for growth.
We shall manifest our role as a good corporate citizen by initiating and participating in projects that
promote growth and sustainable development in the communities where we operate.

Corporate Profile
1957
On March 12, 1957, Bacnotan Cement Industries, Inc. (BCII) is granted its corporate charter by the
Securities and Exchange Commission.
On May 11,1957, under the leadership of Philippine Investment Management Consultants (PHINMA),
Inc., BCII purchased the cement plant of the Cebu Portland Cement Company located in Bacnotan, La
Union.
BCII, together with its subsidiary-sister plants (Central Cement Corp., Davao Union Cement Corp. and Hi
Cement Corp.), became the foremost producer of cement in the Philippines under the brand name
Union Cement.
 The PHINMA pioneers:
(left to right) Ramon V.
Del Rosario, Sr., Filemon
C. Rodriguez, and Ernesto
O. Escaler

1958
On August 15, 1958, the
company was listed in
the Philippine Stock
Exchange.

1963
The company ventured into the manufacture of galvanized iron (GI) sheets, with its first steel plant in
Poro Point, La Union. This spawned a galvanizing company known as Bacnotan Steel Corporation (now
Union Galvasteel Corporation).

1969
Trans-Asia Oil and Mineral Company was formed to undergo exploration in the northwest seas of
Palawan. Success in this endeavor snowballed into other energy projects such as coal mining, and
energy generation.
On October 24, 1969, Bacnotan Cement Industries, Inc. was renamed Bacnotan Consolidated Industries,
Inc.

1971
BCII and its affiliates ventured into the paper and packaging business with the United Pulp and Paper
Company (UPPC) in Calumpit, Bulacan. The plant initially produced sack Kraft paper, for use in the
cement packaging business. UPPC continuously upgraded their production capacity, introduced new
paper product lines, and increased revenues significantly.

1987
PHINMA Realty Corporation and FCI Development Corp merged into a new company: PHINMA Property
Holdings Corporation (PPHC), which initially focused on property management and eventually evolved
to become a leading developer of low-cost, medium-rise housing projects.

1989
Through the efforts of Mr. Ramon del Rosario, Jr., BCII and PHINMA partnered with A. Soriano Co. and
Benguet Corporation to transform Anscor Capital Corp. and launch the Asian Savings Bank, later named
Asian Bank into a commercial banking institution.

1997
Trans-Asia Power Generation Corporation, the joint venture project of Trans-Asia Oil and Hi-Cement
Corporation, commissioned its 52 MW power plant in Bulacan.
BCII and Atlas Cement Corporation (ACC) transferred all of its cement shares to a newly formed
company, Union Cement Holdings Corporation, and entered into a strategic partnership with the
Switzerland-based international cement group, Holderbank, then the world’s largest.

1999
United Pulp and Paper Company, Inc. inaugurated its second paper mill amounting to P6 Billion, making
it the biggest and most advanced paper manufacturing facility in the Philippines. This was a joint venture
project between PHINMA and Thailand's Siam Cement Group, the largest industrial conglomerate in
Thailand.

2000
The three cement companies under UCHC merged into Union Cement Corporation, with the objective of
integrating and improving coordination among the plants.

2001
The company and its subsidiaries and affiliates,
moved into the new PHINMA Plaza in Rockwell
Center, Makati.

2003
Siam Pulp and Paper Company, PHINMA's strategic
partner in the paper business, infused new equity
into United Pulp and Paper Company and bought out
the interest of BCII.

2004
BCII and ACC sold their investment in the cement
business to Holderbank (now Holcim). This marked
the end of more than four decades of industrial
primacy and the beginning of a new journey into the
services sector.
In the same year, PHINMA and BCII acquired a
controlling interest in Araullo University, its maiden
investment in the Education sector.

2006
As part of a five-university network goal, BCII, together with PHINMA, acquired Cagayan de Oro College,
Inc.
PHINMA Property Holdings Corp. became a leader in affordable medium-rise housing in Metro Manila
with more than 4,000 condo units.

2008
BCII, through One Animate Limited, invested in Toon City Animation, Inc., its first foray into business
process outsourcing. Toon City is an award-winning animation studio providing 2D, Flash and 3D
computer-generated imagery (CGI) animation services.

2009
BCII furthered its commitment to the education sector. With the company’s partners, the Victory Liner
and the Five Star transport groups, BCII acquired University of Pangasinan, Inc. in Dagupan City and the
University of Iloilo.

2010
To align it with the name of its parent company, Bacnotan Consolidated Industries Inc. was renamed
PHINMA Corporation (PHN).

2011
PHINMA Corporation acquired an 85% interest in Fuld & Company, Inc., a business research and
consulting firm focusing on business and competitive intelligence. PHN also acquired a 100% interest in
Business Back Office, Inc. - Global Business Research Support (BBI), a Philippine knowledge process
outsourcing firm.

Technical Profile:
UNION GALVASTEEL CORPORATION (UGC) started as the Union Steel Plant Division of BACNOTAN
CEMENT INDUSTRIES, INC. (Bacnotan), a pioneer in the Philippine Cement Industry and commenced
commercial operations in 1963 with a galvanizing plant in Poro, San Fernando, La Union for the
manufacture of Galvanized Iron (GI) sheets. It subsequently expanded operations with galvanizing
plants in Ilang, Davao City in 1968 and in Calamba, Laguna in 1990. The division was spun off in 1993 as
a separate business unit and incorporated as BACNOTAN STEEL CORPORATION. The company in 1995
established a modern Continuous Galvanizing Line and a Color Coating Line for the manufacture of
prepainted galvanized steel coils in Calamba, Laguna.

In June 2000, the company was renamed U N I O N G A L V A S T E E L C O R P O R A T I O N, a name that

identifies its core business and brings Union Galvasteel as a leading brand of galvanized and prepainted
steel roofing products in the market.

Today, UNION GALVASTEEL CORPORATION is the market leader in the manufacture and distribution of
prepainted galvanized roofing and other galvanized roofing and other galvanized steel products such as
steel decking, building systems’ components and insulated panels for commercial, industrial, and
residential applications. The company has the largest and most diversified distribution network in the
industry, with rollforming plants, warehouses and sales offices in strategic locations throughout the
country.

The company is owned by PHINMA CORPORATION, a highly diversified holding company with interests
in enterprises involved in housing, steel roofing products, energy, education, and business process
outsourcing.

PHINMA was founded in 1956 by a group of prominent businessmen and industrialists led by Amb.
Ramon V. del Rosario, Sr., Don Filemon C. Rodriguez, and Mr. Ernesto O. Escaler.

Plant Facilities:
La Union: Poro Point, San Fernando, La Union Isabela: OLMA Bldg., Brgy. Batal, National
Tel. Nos.: (072) 242 0331 to 32 Highway,
Fax No.: (072) 888 4298 Santiago City, Isabela
Pangasinan: Nalsian, Calasiao, Pangasinan Telefax No.: (078) 682 8436
Tel. No.: (075) 523 9799 Laoag: Brgy. Barit, Bacarra Road, Laoag City,
Fax No.: (075) 517 3970 Ilocos Norte
Nueva Ecija: Valenzuela, Sta. Rosa, Nueva Ecija Tel. No.: (077) 770 3773
Tel. No.: (044) 940 0451 Baguio: Km. 6, Betag, La Trinidad, Benguet
Fax Nos.: (044) 311 0412; (02) 246 5030 Telefax No.: (074) 309 2934
Urdaneta: Brgy. Purok 1-B, Nancasayan,
Urdaneta City, Pangasinan
Tel. No.: (075) 568 2542
Bicol: Princeton Warehouse, San Jose,
Pili, Camarines Sur
Telefax No.: (054) 477 7000
Lucena: Purok Jasmin, Brgy. Domoit,
Diversion Road, Lucena City
Tel. Nos.: (042) 373 3017; 660 5766
Cavite: Molino-Paliparan Road, Brgy. Salawag,
Damariñas, Cavite
Tel. No.: (046) 850 5075
Batangas: Soro-Soro, Karsada, Batangas City
Tel. Nos.: (043) 402 0922; 300 7879
Cainta: Warehouse 1B, Mercedes Business Park,
Brgy. San Andres, Cainta, Rizal
Tel. No.: (02) 227 2532
Telefax No.: (02) 628 1500
Pampanga: Gloria I, Sindalan, MacArthur Hi-
way,
San Fernando, Pampanga
Telefax No.: (045) 455 2490
Davao: Bo. Ilang, Davao City
Tel. Nos.: (082) 238 0592; 238 0593; 238 0064
(082) 238 0004; 238 0005; 238 0649
Cagayan de Oro: Cor. Malasag Road, Zone 9,
Cugman, Cagayan de Oro City
Tel. Nos.: (088) 855 1563; 855 1684
Zamboanga: Veterans Extension, Sta. Maria,
Zamboanga City
Tel. Nos.: (062) 992 7959; 992 7957
Ozamiz: Rizal Ave., Lam-an, Ozamiz City
Tel. Nos.: (088) 521 5002; 521 4998
Butuan: Door 3, Butuan Premier Warehouse,
Km. 4, Baan, Butuan City
Tel. No.: (085) 342 6497
Valencia: Roque Compound, Purok 17-A,
Hagkol Poblacion, Valencia City
Tel. No.: (088) 828 3662
General Santos: Km. 3, BTY Compound,
National Hi-way,
General Santos City
Tel. Nos.: (083) 301 9299; 301 9300
Cebu: National Hi-way, Tayud,
Consolacion, Cebu
Tel. Nos.: (032) 412 8013 to 15; 233 2722
Fax No.: (032) 233 2725
Bacolod: 127-128 FL Soliman Bldg.,
Moran-Lacson St., Bacolod City
Tel. No.: (034) 435 7175
Telefax No.: (034) 433 9092
Iloilo: Balantang, Jaro, Iloilo City
Telefax Nos.: (033) 508 5087; 329 4119
Tacloban: Door 21, YKS Complex,
Brgy. Anibong, Tacloban City
Tel. No.: (053) 523 0830
Telefax No.: (053) 325 2506
Bohol: CPG North Ave., Ubujan District,
Tagbilaran City
Telefax No.: (038) 411 5018

II. MANUFACTURING PROCESS

Raw Materials
•Main steelmaking raw materials
–Iron ore and coking coal are the two main inputs in the integrated steelmaking process
–Scrap is used mainly in EAF but also in BOF
•Other metals used in smaller amounts
–In all or most steels : manganese, silicon
–In some steels :nickel, chromium, zinc and tin
–Minor alloying elements : molybdenum, vanadium and tungsten

Flowchart:
Products
(A) Roofing, Walling and Cladding

•Duratile •Duratile Multicolor

•Durarib •Duratwin

•Duracorr •Laverne

•Hi-Rib •Mini Rib

 •Mega Hirib •Duraspandrel

•Duraseam •Duracurve

(B)Duratherm Insulated Panels

•Roofing PU Panels •Standard PU Panel

(C)Building System Product

•C-Purlins •Duraweb

•Duradeck •Battens

(D)Industrial Products

•GI Coils and Sheets •Prepainted Coil and Sheets

III. QUALITY CONTROL
IV. WASTE AND WATERWASTE TREATMENT
The production of iron from its ores involves powerful reduction reactions in blast furnaces.
Cooling waters are inevitably contaminated with products especially ammonia and cyanide. Production
of coke from coal in coking plants also requires water cooling and the use of water in by-products
separation. Contamination of waste streams includes gasification products such
as benzene, naphthalene, anthracene, cyanide, ammonia, phenols, cresols together with a range of
more complex organic compounds known collectively as polycyclic aromatic hydrocarbons (PAH).

The conversion of iron or steel into sheet, wire or rods requires hot and cold mechanical
transformation stages frequently employing water as a lubricant and coolant. Contaminants
include hydraulic oils, tallow and particulate solids. Final treatment of iron and steel products before
onward sale into manufacturing includes pickling in strong mineral acid to remove rust and prepare the
surface for tin or chromium plating or for other surface treatments such as galvanisation or painting.
The two acids commonly used are hydrochloric acid and sulfuric acid. Wastewaters include acidic rinse
waters together with waste acid. Although many plants operate acid recovery plants, where the mineral
acid is boiled away from the iron salts, there remains a large volume of highly acid ferrous
sulfate or ferrous chloride to be disposed of. Many steel industry wastewaters are contaminated by
hydraulic oil, also known as soluble oil.

In the steel industry, where large amounts of water are used, there is a movement toward not
just preventing the waste water from causing pollution, but also to treat the waste water and recycle it
in a closed system with the objective of conserving diverted water.

Waste water system example from a steel manufacturing process

V. ROLES/JOB OF CHEMICAL ENGINEERS

The chemical engineers that are employed in Union Galvasteel are most likely found to be
working in laboratories. Their part in the industry is to check whether the finished product is of high
quality. Chemical engineers are also checking the composition of the main product. They make sure that
the finished products conform to set standards either set by the government of by the industry itself.
They are responsible for the development of the steel process and products at a steel mill. A chemical
engineer could work in the testing lab working on chemical analysis of steel. Also, a chemical engineer
could work on analysis of slag reactions. Also, you could work on analyzing the pickling process (e.g.
inhibited acids). Lastly, there are various rolling oils used that require engineering and frequently have
chemical engineers employed.

VI. RECOMMENDATION
During the time of our visit, unfortunately, production was stopped for maintenance purposes
so we were not able to really see how their product is being made. We were not able to watch how
processes are being done. But still, we had the overview of all the processes because we were guided
around by people working for the company, most of them are engineers. They did great in explaining
how the machines work, from the processing of raw materials until the packaging of products. People in
the company are approachable and nice. By the end of the tour, they even answered our follow up
questions. As for me, the general working environment is very pleasant.

VI. APPENDIX
Documentation
(Cameras are not allowed inside the plant.)

Bibliography

http://www.uniongalvasteel.com.ph/
http://www.phinma.com.ph/our_business/page/union-galvasteel-corporation
Photo source: Facebook of Harana Tours Corporation