Chinese steel manufacturer Panhua Group Co., Ltd. formally signed a memorandum of understanding (MOU) with the Department of Trade and Industry (DTI), the Philippine Economic Zone Authority (PEZA) and the PHIVIDEC Industrial Authority for its USD 3.5-billion investment in the Philippines, which includes the establishment of an integrated steel mill.
According to the DTI, Panhua’s investment plan involves an integrated steel manufacturing plant with a capacity of 10 million metric tons, downstream industries, an industrial park, and a port.
The project is expected to be completed in three phases within the time span of 6-7 years. It is expected to create 50,000 jobs in the country.
The MOU was signed on Tuesday this week. Following the MOU signing, Panhua is expected to register with PEZA and secure permits to start its operation, as well as to sign a separate memorandum of agreement with the government to begin the construction of its project.
Panhua Group was incorporated in 2004 with registered capital of $127 million. The company has a number of steel mills in China since 2006, has been exporting steel coils to more than 50 countries directly. Besides steel manufacturing, Panhua has subsidiaries in other business divisions such as real estate, shipping terminals, metal mines and commercial banks.
PEZA has been actively inviting foreign investors to put up a new integrated steel mill in the country while also brokering for the possible revival of the mothballed assets of National Steel Corp. in Mindanao.
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