CHINESE steel company Panhua Group Co., Ltd. will build a 305-hectare integrated steel manufacturing plant in Misamis Oriental through a three-phase project at an investment of $3.5 billion, the Trade secretary said on Tuesday.
The project, which will be set up at the PHIVIDEC Industrial Estate of the Misamis Oriental-Special Economic Zone, will consist of a port, an integrated steel mill with a capacity of 10 million tons, an industrial park, and other downstream industries.
Ramon M. Lopez, secretary of the Department of Trade and Industry (DTI), on Nov. 20 led the signing of a memorandum of understanding (MoU) between Panhua Chairman Xinghua Li, PHIVIDEC Industrial Authority Chief Executive and Administrator Franklin M. Quijano, and Philippine Economic Zone Authority (PEZA) Deputy Director General Tereso O. Panga.
“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,” Mr. Lopez said in a statement.
The project is expected to be completed in six to seven years and will generate 50,000 jobs.
After the MoU, Panhua will have to obtain a PEZA registration and an Environmental Compliance Certificate from the Department of Environment and Natural Resources, and sign a memorandum of agreement to begin the construction of the project.
DTI quoted the Panhua chairman as saying that his group was looking forward to the inception of this project. He is optimistic about building more industrial parks to increase employment and attract businesses into the provinces of Philippines, it added.
The department also said, through its attached agency PEZA, it was committed to assist Panhua in accomplishing the succeeding steps to immediately set up the steel plant early next year. — Victor V. Saulon
