MANILA, Philippines - Chinese steel maker Panhua Group Co. Ltd. has committed P9 billion for a project involving the pre-painting of steel coils and metal sheets in the Subic Bay Freeport.
Subic Bay Metropolitan Authority (SBMA) chairman Roberto Garcia said the investment promotion agency’s board of directors approved Panhua Group’s proposal earlier this year.
The Chinese firm’s investment would be used for a facility for pre-painting steel coils and metal sheets for export and for domestic trade.
The facility would be located at Subic Bay Gateway Park Phase 2 and would have 100 employees.
The firm aims to export 42,000 metric tons of steel coils and metal sheets per month from the facility beginning the first quarter of 2016.
Garcia said the entry of the Panhua Group in Subic shows the growing attractiveness of the country to foreign investments.
“The Philippines is currently enjoying a BBB rating from Standard and Poor, which means that the country has adequate capacity to meet financial commitments,” he said.
Amid growing interest from foreign companies in the Philippines and investment rating upgrades received from debt watchers, he said more foreign direct investments are expected to be made in the country.
The Panhua Group is a large-scale conglomerate, manufacturer, exporter, and wholesale supplier of cold-rolled steel coil, cold-rolled steel sheet, galvanized steel coil, galvanized steel sheet, pre-painted galvanized steel coil, and pre-painted galvanized steel coil sheet.
Having an annual steel production capacity of 1.5 metric tons, the group is among the top 500 private enterprises in China.
Its main manufacturing facilities are located in Zhangjiagang City and Fuling District, as well as Chongqing City in mainland China.
Aside from steel manufacturing, Panhua Group is engaged in shipping, real estate, mining and logistics.