China’s Panhua Group is going to start construction of the first phase of a large integrated steel plant in Misamis Oriental, Philippines, by the end of this year, according to group chairman Xinghua Li. The announcement has come just after the Chinese firm signed the related memorandum of agreement (MOA) with the Philippine Economic Zone Authority (PEZA). The company is waiting for a land license at the moment.
The investments in the first phase will be $3.5 billion. The total capacity is expected at 10 million mt per year, with about 3 million mt in the first phase, according to sources. The product range has been not disclosed yet, but the new mill will produce slabs, HRC and downstream products such as HDG.
Panhua Group plans to sell steel products from the new plant to the local market and abroad, in particular to the EU, the US and Russia. At the moment, according to the requirements for PEZA-registered exporters, export sales have to be not less than 70 percent of total sales, but Panhua Group has requested to increase the allowance for domestic sales to 60-70 percent.
