Major Chinese firm to invest $ 4.4bn in Philippines steel project

HBIS Group Co. Ltd., one of the largest steel companies in China, together with Huili Investment Fund Management Co. Ltd., Steel Asia Manufacturing Corp. and PHIVIDEC Industrial Authority, signed on Friday an agreement to build a $ 4.4 billion integrated steel complex in the eastern province of Misamis.

Commerce Minister Ramon Lopez said the latest business agreement was the largest industrial investment from China to date. The project consists of two phases that will create more than 20,000 additional jobs.

“This project is very important for our industrial development, as it has an integrated steel industry, competitive in the global market, to support the growing economy, reduce poverty and create jobs for every Filipino,” said Lopez.

Huili Investment Fund will finance the first phase of a US $ 3 billion project to build two blast furnaces for the production of hot coils for cold rolled coils. It also funds $ 1.4 billion. USA for steel production in the household appliance sectors and for the production of automotive-grade steel.

The first stages will ensure the production of 4.5 million tonnes of hot rolled coils and 600,000 tonnes of slabs. The project will increase the steel production capacity to 8 million tons in the second stage.

Dominant iron and steel producer SteelAsia will provide technology and technical support for the production of structural steel, while PHIVIDEC will provide long-term lease of land as a preferred site.