Chinese steel firm plans to invest in PH

Panhua Group, China’s leading integrated steel producer and exporter to the US, and a group of Chinese construction material manufacturers are investing in the development of their exclusive economic zones in the country.

Philippine Economic Zone Authority (PEZA) Director-General Charito B. Plaza said that Panhua is still looking for the right location of their planned integrated steel manufacturing operation in the country.

Plaza is set to go to China next week to sign the memorandum of agreement for the investment and to visit Panhua’s plant.

On Tuesday, some 50 Chinese steel products manufacturers from the Guanzho China Construction Materials Manufacturing Association visited PEZA to discuss plans of developing their own ecozone in the country. Plaza said they are looking at areas in the Visayas and Mindanao for possible location.

Both projects have no investment costs yet, but PEZA said these involved huge amount of capital.

Development and production of construction of construction materials, particularly steel, dovetailed with the PEZA plan to establish mineral processing industry in the country.

PEZA noted that 90 percent of the Philippines needs of construction materials are imported despite the abundance of minerals iron ore, chromite and nickel locally. These materials have been allowed to be exported instead of being processed locally.

“Hence, PEZA is inviting mineral processing industries to manufacture different steel products to minimize the country’s importation of construction materials where 70 percent comes from China,” said Plaza.

Based on its website, Panhua Group Co., Ltd. was established in 2004. It is headquartered in Zhangiiagang Free Trade Zone, 200 kilometers away from Shanghai.

Panhua possesses about 10 square kilometers of land and 3400 employees in total. By turnover, Panhua Group is ranked among Top 500 Chinese Companies.