Trade Secretary Ramon Lopez said Panhua Group Co. Ltd. of China will set up a 305-hectare integrated steel manufacturing plant at the Phividec Industrial Estate of the Misamis Oriental-Special Economic Zone in Tagoloan, Misamis Oriental.
Lopez led the signing of the memorandum of understanding between Panhua chairman Xinghua Li, Phividec Industrial Authority chief executive and administrator Franklin Quijano and Philippine Economic Zone Authority deputy director-general Tereso Panga at the sidelines of Chinese President Xi Jinping’s visit to the Philippines.
The $3.5-billion investment will consist of a port, an integrated steel mill with a capacity of 10 million tons, an industrial park and other downstream industries.
The three-phase project is expected to be completed in six to seven years and will generate 50,000 jobs, according to the Trade Department.
“The signing of this MOU is a testament to the strengthened relations between Philippines and China. A completely private undertaking, Panhua, is set to accomplish President Rodrigo Duterte’s vision of growing the integrated iron and steel industry so it can cater to the growing domestic and external market demand,” said Lopez.
Panhua will proceed to obtain a Peza registration and an environmental compliance certificate from the Environment Department. It will then sign a memorandum of agreement to begin the construction of the project.
Panhua chairman Xinghua Li said he was looking forward to the inception of the project and was optimistic about building more industrial parks to increase employment and attract businesses into the provinces.
The Trade Department said it committed to assisting Panhua in accomplishing the succeeding steps to immediately set up the steel plant early next year.
COMMENT DISCLAIMER: Reader comments posted on this Web site are not in any way endorsed by Manila Standard. Comments are views by manilastandard.net readers who exercise their right to free expression and they do not necessarily represent or reflect the position or viewpoint of manilastandard.net. While reserving this publication’s right to delete comments that are deemed offensive, indecent or inconsistent with Manila Standard editorial standards, Manila Standard may not be held liable for any false information posted by readers in this comments section.