The Department of Trade and Industry (DTI) has said that a Chinese company is planning to set up a $3.5-billion steel manufacturing plant in Mindanao that is likely to create around 50,000 jobs. 

Trade Secretary Ramon Lopez signed a memorandum of understanding with the Philippine Economic Zone Authority (PEZA) and the PHIVIDEC Industrial Authority 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 during the visit of Chinese President Xi Jinping’s visit to the Philippines. 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. 

This will come in three phases, which is expected to be completed in six to seven years and is projected to create 50,000 jobs in the country.

Following the MOU signing, Panhua is expected to register with PEZA and secure permits to start its operation, as well as to sign a separate memorandum of agreement with the government to begin the construction of its project.