Chinese steel company to build a plant in the Philippines

Chinese steel company Panhua Group Co Ltd has announced its decision to build a new integrated steel plant in the Philippines. The proposed project includes a port, an integrated steel plant with a capacity of 10 million tons, an industrial park and other processing facilities, which will be implemented in three phases.

The plant will be established on the Phividec industrial site in the Misamis Special Economic Zone. The company expects investments of about $ 3.5 billion.

A Memorandum of Understanding was signed between Panhua Chairman Xinghua Li, CEO of Industrial Administration PHIVIDEC and Administrator Franklin M. Quijano and Deputy CEO of the Philippine Economic Zone (PEZA) Terezo O. Panga on November 20, 2018. This was stated by the Minister of Commerce Ramon Lopez at the beginning of the two-day visit of the Chinese prime minister to the country.

Meanwhile, Lopez noted that the Memorandum testifies to the strengthening of relations between the Philippines and China. In addition, he hopes that the integrated steel mill will be able to meet the growing domestic and foreign market demand.

The proposed project includes a port, an integrated steel plant, an industrial park and other processing facilities that will be implemented in three phases. It must obtain PEZA registration and environmental compliance certificate from the Department of Environment and Natural Resources prior to commencement of construction work. The project is expected to take at least six to seven years and generate about 50,000 jobs in the region.