Global Ferronickel Holdings Inc. (FNI) on Friday said it was looking at the feasibility of a steel plant worth $500 million to $700 million, to be built in the Philippines through a partnership with China’s Baiyin Nonferrous Group Co. Ltd.
The move is part of a strategic cooperation signed with Baiyin, one of many deals firmed up during President Duterte’s state visit in Beijing.
The state-run Baiyin is based in Gansu province, and is one of the largest producers of non-ferrous metals in China.
“We recognize the importance of promoting close cooperation with China to spur economic growth in the country,” FNI chair Joseph C. Sy said in a statement.
“We see Baiyin as a strong partner who will play a vital role with us in creating greater value added in the nickel value chain in the Philippines,” he added.
FNI and Baiyin committed to work together in evaluating possible investments in value-added downstream projects in the Philippines, including an integrated 200-series stainless steel plant in the Philippines.
The plant being considered will have a production capacity of one million tons yearly, and will use lower-grade nickel ore mined in the Philippines.
The term “200-series” refers to a set of steel grades that are used—among other applications—to make household items like sinks, water tanks, washing machines, cutlery and cookware.
China is the largest consumer of nickel in the world, accounting for about half of world consumption.