The proposed steel plant is a modern facility capable of producing 10 different product lines with various applications, complete with a modern port and a 300-hectare industrial park.
Panhua group was incorporated in 2004 and is based in Zhangjiagang, Jiangsu province of China. The company is engaged in the manufacturing of flat steel products such as CRC, hot-dipped galvanised and pre-painted galvanised steel coils. The company not only caters to domestic market but also exports its products to UK, U.S., Europe, Australia and African countries.
Panuha Group is looking for a new manufacturing hub in a neighbouring country, Philippines after the U.S. government’s imposition of higher tariffs on steel and aluminium imports from China.
A good investment opportunity in a steel-importing country
Philippines is dependent upon imports to meet its steel requirements. Market reports suggest that the domestic demand for steel in the country has risen to 10 MnT annually, making it 17th biggest importer of steel in the world.
PEZA’s deputy director general Theo Panga quoted that the project by Panhua Group is a welcome development for the Philippines and would help to put a stop on country’s steel imports. Having an integrated steel mill would bring the growth of several big and small scale industries as well as the supporting power, transport and communication facilities, he added.
“We can further stimulate domestic manufacturing and accelerate our industrialization if we attract foreign direct investment that will put up basic industries in the country such as integrated steel, petrochemical, and mineral processing,” Panga said.
The country’s growing need for more and better infrastructure under the BBB program (Build, Build, Build) is expected to further increase the demand for steel.
Although the country’s industrialization level may be lagging behind ASEAN (Association of Southeast Asian Nations) neighbours, the country’s current administration is making efforts to elevate Philippine’s status as a newly industrialized/middle-income economy by the end of the current administration’s term.