Construction of New $3.5B Integrated Steel Plant to Begin Soon

SEATTLE (Scrap Monster): The Chinese Panhua Group announced that it plans to start construction works on the $3.5 billion integrated steel manufacturing facility in Misamis Oriental, the Philippines before the end of the current year. The company has already signed a memorandum of agreement (MoA) with the he Philippine Economic Zone Authority (PEZA).  

According to Xinghua Li, Panhua Group Board Chairman and Chief Executive Officer, the company plans to invest around $3.5 billion over the next three years to complete the initial phase of the plant, which is expectded to create up to 30,000 new jobs. The Phase 2 and Phase 3 of the plant will add to its capacity, thereby enabling it to reach production levels that will cater to the rising domestic steel demand, he added. The total employment opportunities are projected at around 50,000.

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The steel plant will be constructed in an area of nearly 300 hectares within the PHIVIDEC Industrial Estate. The company expects the plant to become operational in three years from the start of construction.

Upon completion, the plant will have a capacity of 10 million tons of steel products per year, including slabs and galvanized colour coated coils. Bulk of the production will cater to local market demand, whereas a portion of the output will be exported to foreign markets including the E.U region, the U.S. and Russia.