A CHINESE company has pledged to invest $3.5 billion (about P184.1 billion) for an integrated steel mill in Mindanao, strengthening the country’s production of iron and steel, and creating more than 50,000 jobs, Trade Secretary Ramon M. Lopez said.
In a recent statement, Lopez confirmed China-based Panhua Group Co. Ltd. will build a steel manufacturing plant at the Phividec Industrial Estate in Misamis Oriental. This was after the government on Tuesday signed a memorandum of understanding (MOU) with Panhua Chairman Xinghua Li.
The proposed steel mill will cover 305 hectares. It will consist of a port, a production facility with a capacity of 10 million tons, an industrial park and other downstream industries.
The project will be completed in three phases and is penciled to operate in six years to seven years.
“The signing of this MOU is a testament to the strengthened relations between the Philippines and China. A completely private undertaking, Panhua, is set to accomplish President Duterte’s vision of growing the integrated iron and steel industry so it can cater to the growing domestic and external market demand,” Lopez said.
After the MOU, Panhua must obtain a registration with the Philippine Economic Zone Authority and an environmental compliance certificate from the Department of Environment and Natural Resources.
The firm should also ink a memorandum of agreement with the government to begin the construction of the project. Li said he is looking forward to the inception of the project.
He added he is determined to build more industrial parks to increase employment and attract businesses into Philippine provinces.
The government is committed to assisting Panhua accomplish the next steps to immediately set up the steel mill early next year, the trade chief said.