A $3.5 Billion Chinese invest will put up a steel plant in Mindanao

A $3.5 Billion Chinese invest will put up a steel plant in Mindanao




Once upon a time the Philippines owned the biggest steel factory in Asia, it was called The National Steel Corporation which was based in Iligan.



Then came the Fidel V. Ramos presidency where one of his economic policies is the privatization of government owned and controlled companies, he was able to sold the company to Malaysian businessmen. This stunted the growth spurt that was needed by the country to industrialize, a nation without its own steel plant would always be depended on the high purchase price form other sources which was what happened to the Philippines, Chinese made steel floods our steel market.

 
Iligan was once home to Asia's biggest steel plant in NAtional Steel Corporation before it was privatized and sold by the Ramos administration to Malaysian businessmen (photo credit to owner)



A Chinese steel company will invest $3.5 billion in the President’s home province Mindanao to set up an integrated steel manufacturing plant.


Department  Trade and Industry Secretary Ramon Lopez stated that the Chinese steel company Panhua Group Co. Ltd. (Panhua) will be developing  a 305-hectare integrated steel manufacturing plant in an economic zone in Northern Mindanao.



The Chinese investment will be used to put up a port, an integrated steel mill with a capacity of 10 million tons, an industrial park and other downstream industries, DTI  Sec. said in a statement.

The project will be done in three phases and it is expected to be complete in 6 to 7 years, and can employ around 50,000 jobs. Phividec Industrial Estate of the Misamis Oriental Special Economic Zone, will host such big investment.

A Memorandum of Understanding was signed  by both the Philippines and China’s top officials regarding this steel plant project.



“The signing of this MOU is a testament to the strengthened relations between the Philippines and China,” Sec. Lopez said.

Lopez said the project is in line with President Duterte’s vision of growing the iron and steel industry so it could cater “to the growing domestic and external market demand.”

*this has been updated Sept. 17, 2019


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Report from PNA

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2 Comments

  1. Wow ! This is so exiting for us Filipino people . Once all projects done and accomplish , Philippines will be like other neighboring countries of Asea that is rich . I can imagine so...
    I feel like going home to my home country Philippines now .
    But then still scared of doing so because we live and survive out of our earnings here abroad .
    May the Gov't Associations or lenders can let us owe money for our puhunan to put up business there or how I wish I could employ in the Govt in the Phils ? Im above sixties now though ...
    Any suggestions please ? Thank you .

    ReplyDelete
  2. The establishment of a steel factory in the country will help a lot in the matter of Philippine industry and economy, even to the ordinary Filipino people, due to various obvious reasons.

    ReplyDelete