MANILA – The Cagayan Economic Zone Authority said Thursday it signed a deal with 2 Chinese firms to establish $1-billion Maglev production and training center in the country.

CEZA, Eminova Asset Management Ltd and Hunan Goke Maglev Technology Development Ltd signed a memorandum of understanding last Wednesday for the facility in Sta. Ana, Cagayan, CEZA administrator and CEO Raul Lambino said in a statement.

"We need to be aggressive and innovative in promoting our competitive edge in the Freeport. We have relatively cheap labor, highly-skilled workers, vast tracks of unused lands and attractive fiscal incentives,” Lambino said.

Eminova has investments in energy, environment and infrastructure investments while Hunan Goke Maglev Technology is a magnetic levitation line builder based in Shanghai, CEZA said.

Eminova Asset Management Ltd will fund the start-up phase of the venture while CEZA will provide the land area, Lambino said.

The proposed hub can produce light rail vehicles, and medium and high-speed Maglev trains for Southeast Asia, Lambino said.

Earlier this year, CEZA launched the “Crypto in the Valley” in Cagayan to attract firms that are into financial technology solutions and offshore trading of cryptocurrencies such as bitcoin, Lambino said.