THE Chinese company Panhua Group Co., Ltd. (Panhua) will set up a 305-hectare integrated steel manufacturing plant at the Phividec Industrial Estate of the Misamis Oriental-Special Economic Zone (Piemo-SEZ), said Trade and Industry Secretary Ramon Lopez.

At the sidelines of Chinese President Xi Jinping’s visit to the Philippines, the secretary led the signing of the memorandum of understanding (MOU) between Panhua Chairman Xinghua Li, Phividec Industrial Authority CEO and Administrator lawyer Franklin Quijano, and Philippine Economic Zone Authority (Peza) Deputy Director General Tereso Panga on November 20.

The USD 3.5-billion investment will consist of a port, an integrated steel mill with a capacity of 10 million tons, an industrial park, and other downstream industries. The three-phase project is expected to be completed in six to seven years and will generate 50,000 jobs.

“The signing of this MOU is a testament to the strengthened relations between Philippines and China. A completely private undertaking, Panhua, is set to accomplish President Rodrigo Duterte’s vision of growing the integrated iron and steel industry so it can cater to the growing domestic and external market demand,” said Secretary Lopez.

After this MOU, 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 of the project.

Panhua chairman Xinghua Li said that they are looking forward to the inception of this project. He is optimistic about building more industrial parks to increase employment and attract businesses into the provinces of PH.

DTI, through its attached agency Peza, is committed to assisting Panhua in accomplishing these succeeding steps to immediately set up the steel plant early next year. (PR)