Panhua Group Co Ltd of China, a flat steel manufacturer with subsidiaries in real estate, shipping terminals, metal mines and commercial banks, is finalizing a deal to construct a US$3.5 billion, 305-hectar integrated steel manufacturing plain in Mindanao, Philippines. According to the country’s Trade and Industry Secretary Ramon Lopez, the project will be rolled out in three phases and may take up to seven years to complete.
The project includes a 10 million mt integrated steel mill, an industrial park, and a port. The project has been signed as a memorandum of understanding (MOU) and is expected to satisfy both the domestic and external market demand for steel.
The steel plant will be part of the first phase and Panhua is expected to begin construction in Q1 2019 after Panhua obtains proper registrations and environment compliance certificates for the project. Lopez pledged his department's assistance in facilitating all steps to launch site.
The potential deal was first announced in June 2018 by the Philippines Economic Zone Authority (PEZA) as it sought foreign investment.
The Philippines produced 1.37 million mt of crude steel in 2017, up by 28 percent compared to 1.07 million mt in 2016. The country imported 5.68 million mt of steel in 2017, up by 3.5 percent from the previous year.