Babcock-Hitachi to invest additional P200M on a new plant

Babcock-Hitachi (Philippines) Inc. is investing an additional P200 million for a new plant in Batangas that will manufacture big capacity boilers called "super critical boilers" which are used by power plants.

BHPI has sought and gotten approval from the Board of Investments (BOI) to register its new project separate from its existing production of boiler and boiler components.

The firm had requested for a pioneer status for its new project.

However, BOI managing head Elmer C. Hernandez explained that the BOI has initially approved the project on a non-pioneer status without prejudice to a future upgrade to pioneer status.

Hernandez said that the BOI needs to consult with the metal industry association regarding the proposed project and also with the Department of Science and Technology (DOST) which is more knowledgeable about such matters.

After the consultation and a favorable DoST recommendation, Hernandez said, the BOI may upgrade the BHPI project status.

BHPI already manufactures industrial boiler and boiler components which are used as steam generators for industrial plants such as refineries, food processing, brewery and sugar plant.

The industrial boilers BHPI currently manufactures have a generating capacity of only 35 tons per hour.

However, the proposed super critical boilers would be able to generate steam capacity equivalent to between 600 megawatt to 1,200 MW and are intended primarily for power plants.

BHPI projects production of only two units per year of the super critical boilers and only upon order.

The new project of BHPI in Batangas would be the third plant of the Babcock Group to produce big capacity boilers.