Philippines' Department of Trade and Industry (DTI) announced on Tuesday that China's Panhua Group plans to build an integrated steel manufacturing plant that can produce 10million mt/year to be located in the Phividec Industrial Estate of the Misamis Oriental - Special Economic Zone. The department's statement said that there was a memorandum of understanding signed by Panhua, Phividec, and the Philippine Economic Zone Authority to build a $3.5billion project that will realize an industrial park and other industries to be built on the 305-hectare area.
The memorandum was signed by Trade Secretary Ramon Lopez on Tuesday during the sidelines of Chinese President Xi Jinping's visit to the Philippines. DTI said that the three-phase project is expected to be completed in 6 to 7 years and the agency, through its attached agency PEZA, is committed to assisting Panhua in accomplishing the succeeding steps to immediately set up the steel plant next year.
Lopez said that a complete private undertaking, Panhua, is set to accomplish President Duterte's vision of growing the integrated iron and steel industry so it caters the growing domestic and external market demand.
He added that Panhua will proceed to obtain a PEZA registration and an environmental compliance certificate from the Department of Environment and Natural Resources and to sign a memorandum of agreement to begin the construction. He also said that they are expecting to generate up to 50,000 jobs for Filipinos with the deal.
Xinhua Li, Panhua's chairman, said that the company is optimistic about building more industrial parks to increase employment and attract businesses into the provinces of the Philippines.
President Xi's visit to Manila ended on Wednesday afternoon. This is the first time that the president visited the country and it is the first visit of a Chinese President to the Southeast Asian country in almost 13 years. In his stay, China and Philippines agreed to elevate their bond into a strategic cooperation. The president visit left 29 signed deals with the Philippines covers infrastructure and agriculture, projects, finance, and aid.
According to President Xi, since President Duterte took office, China and the Philippines have re-engaged in dialogue and consultation for the proper handling of the South China Sea issue. He added that the relation of the two countries have now seen a rainbow after the rain and, in a short period of two years, China has become the Philippines' largest trading partner, largest export market and largest source of imports, and the second largest source of tourists.
