Gov’t eyes more perks for $3.5-B steel project
The Department of Trade and Industry (DTI) will assist a Chinese steel manufacturer in its $3.5-billion project in the country, citing the possibility of providing better lease and power rates, a top official said.
Trade and Industry Secretary Ramon Lopez told reporters that the department would help Panhua Group Co. Ltd. in its plan to set up an integrated steel mill in the country.
He said the company had already decided to locate in the Philippines, most likely under DTI-attached agency Philippine Economic Zone Authority (Peza).
Now it’s just a matter of “making it happen,” he said.
“We’ll discuss internally with the [government] agencies, even with President [Duterte] regarding what kind of assistance we could extend to them aside from the usual incentives we give under Peza,” he said.
The Panhua Group is a large-scale manufacturer and wholesale supplier of cold-rolled steel coils and sheets, galvanized steel coils and sheets and prepainted galvanized steel coils and sheets.
“We’ll make it easy for them in terms of locating in the area,” he said, noting that the company is considering the Phividec Industrial Estate-Economic Zone in Misamis Oriental.
Noting that he could not discuss the specifics, he said DTI would try to see if the government could offer the company better lease and power rates.
Panhua group has previously planned to put up a facility at the Subic Freeport in Zambales in 2014, according to Subic Bay Metropolitan Authority. This, however, did not push through.
“Frankly it’s [the company] banking on the good relationship of President Duterte with China. I think they had an interest before but it didn’t push through. I don’t know if it was a land issue,” Lopez said, referring to the plan years ago.
Since 2006, Panhua has been exporting steel coils to more than 50 countries, including the United States and the United Kingdom.
