MANILA – A Chinese company will set up a $3.5-billion integrated steel manufacturing plant in Mindanao that is expected to generate up to 50,000 jobs, the Department of Trade and Industry (DTI) said Wednesday.
Trade Secretary Ramon Lopez signed a memorandum of understanding with the Panhua Group to build a 305-hectare steel plant in the Misamis Oriental Special Economic Zone.
“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,” Lopez said.
The MOU was signed Tuesday on the sidelines of Chinese President Xi Jinping’s visit to the Philippines, the DTI said.
The plant will consist of a port, an integrated steel mill with a capacity of 10 million tons, an industrial park and other downstream industries, the agency said.
It is expected to generate 50,000 jobs and is seen to be completed in 6 to 7 years.
The DTI said it would assist Panhua so that the steel plant could be set up starting early next year.
Xi left Manila Wednesday afternoon following a historic 2-day visit, where China and the Philippines agreed to elevate their ties into a strategic cooperation and signed 29 deals covering infrastructure and agriculture projects, finance, and aid.