The Philippines’ drive to strengthen its domestic manufacturing base gained fresh momentum after Chinese steel giant Panhua Group Co., Ltd. expanded its planned investment in the country to USD3.5 billion, signaling rising foreign investor confidence in the local industrial sector.
The expanded commitment was reaffirmed during a meeting between Trade Secretary Ma. Cristina A. Roque and Panhua Chairman Xinhua Li on the sidelines of the APEC Ministers Responsible for Trade Meeting in Suzhou, China.
At the center of discussions was Panhua’s integrated steel project in Sarangani Province, now emerging as one of the largest foreign-backed steel ventures in the Philippines. The project spans the full industrial chain, combining steel production facilities with dedicated utilities and port infrastructure designed to support large-scale manufacturing and export operations.
Panhua has already reached major milestones, including the launch of its first color-coated steel production line in June 2025. Its galvanizing line is nearing completion, with Phase 1 operations expected to be fully operational within the first half of 2026.
The company is also gearing up for Phase 2 and Phase 3 expansions, reinforcing its long-term commitment to positioning the Philippines as a regional manufacturing hub.
At least 70 percent of the plant’s output is earmarked for export markets, a move expected to strengthen the country’s trade position while supporting industries such as construction, transport, shipbuilding, and infrastructure.
Government officials said the project is expected to generate thousands of jobs, boost technical skills development, encourage technology transfer, and stimulate broader economic activity across Mindanao.
