Philippines largest steelmaker, SteelAsia Manufacturing Corp has signed a memorandum of understanding with China’s HBIS Group Limited for their first integrated iron and steel facility in Lemery, Batangas. The two steel companies inked their deal here Friday during the Philippine-China Business Forum, a side event of President Rodrigo Duterte’s visit to China. Under the MOU, SteelAsia and HBIS will invest around USD 1 billion for phase one of the Lemery plant.
Department of Trade and Industry Secretary Mr Ramon Lopez said that “As DTI pursue a number of strategic projects, an important investment priority is the establishment of the first-ever modern, environment-friendly integrated steel mill project in the Philippines. This is pursuant to the vision of President Duterte to establish the first integrated iron and steel plant during his term, which will allow the country to produce basic iron and steel products, including flat products. These are currently not being produced in the Philippines.”
He added this partnership of Filipino and Chinese companies will support the country’s bid to be a major producer of high quality and safe steel products by 2030.
The trade chief noted that another Chinese firm, Panhua Group, is interested to invest in integrated steel making in the Philippines.
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