Chinese steel giant Panhua Group Co. Ltd. is set to begin operations next month at the first phase of its $3.5-billion (P210 billion) integrated steel facility in Sarangani province, marking a major step in the country’s push to strengthen its domestic steel industry.
The initial phase of the project in Maasim town will focus on metal sheet manufacturing and is expected to generate more than 4,000 direct jobs, according to the Department of Trade and Industry (DTI).
Trade and Industry Secretary Cristina Roque said the company remains committed to further expanding its investments in the country despite years of delays caused by the pandemic.
“They’re very bullish in the Philippines… and they’re so big in China,” Roque told reporters on the sidelines of an event on Monday, 25 May.
10-M tons output targeted
The facility forms part of Panhua’s larger three-phase steel complex, which is expected to eventually produce up to 10 million tons of steel products annually for both domestic and export markets.
The project traces its roots to a 2018 memorandum of understanding signed among Panhua Group, the DTI, the Philippine Economic Zone Authority and the PHIVIDEC Industrial Authority.
The steel complex occupies part of the Kamanga Agro-Industrial Ecozone Development Corp. site in Barangay Kamanga, Maasim, Sarangani.
Once fully completed, the broader development could create as many as 25,000 jobs, according to Panhua chairman Li Xinhua.
The DTI said the company’s entry could help strengthen local manufacturing capacity and reduce dependence on imported steel products.
Roque added that the government continues to engage Chinese firms interested in expanding operations in the Philippines, particularly in electric vehicles, renewable energy and food manufacturing.
During a recent visit to China, the DTI held discussions with companies including NWOW Technology, Shanghai Launch, and Goodwe regarding potential investments in the country.
“We’re talking to them about what they would need so they can move their business here to the Philippines,” Roque said.