China steel firms plan $4.5-B plants in Phl

Two Chinese companies are planning to invest a combined $4.5 billion for iron and steel manufacturing and shipbuilding projects in the Philippines, according to the Department of Trade and Industry (DTI).

In a statement, the DTI said foreign direct investors continue to express confidence in the Philippines with Chinese firms Huili Investment Fund Management Co., Ltd. and Yi Ding Tai International Corp. expressing investment intentions to the Board of Investments (BOI).

The $4.5 billion worth of investments focusing on iron and steel manufacturing and shipbuilding are seen to create 8,000 employment opportunities, the DTI said.

One of these potential investors, Huili Fund has expressed its intention to partner with the Philippines and private sector entities through a letter of intent signed earlier this year and endorsed by China’s Ministry of Commerce.

“The company plans to implement a two-phased project of a world-class integrated steel manufacturing facility that will employ 6,000 people by 2022,” the DTI said.

Huili Fund is a private equity firm based in Beijing, China.

In a recent courtesy call to Trade Secretary Ramon Lopez on Oct. 5, Huili Fund chairman Meng Xiaosu presented the plan for the facility where the first phase will include production of billets, long, and flat products, while the second phase will be completed through iron ore.

The DTI reported that a feasibility study for the facility is being conducted that includes the possible location to set up the facility, where the availability of port and low electricity cost are considered.

“Producing the steel here will be favorable to both parties as it will generate jobs for Filipinos and be cost-effective for the company,” said trade chief Ramon Lopez.

“This complements our drive to provide opportunities to uplift the lives of those at the bottom of the pyramid as we take a step forward to inclusivity and shared prosperity for all,” Lopez added.

The trade chief also emphasized that the project will contribute to the Philippine Manufacturing Resurgence Program (MRP) through knowledgesharing of advanced technological know-how in support of the Philippines’ bid to be a major producer of high-quality and safe steel products by 2030.