Lopez will ask Duterte to give Chinese steel giant Panhua more incentives to revive its stalled PH project
The Philippine government is considering extending more perks to a potential Chinese investor to convince it to establish an integrated steel mill, the country’s top trade official revealed.
Trade and Industry Ramon Lopez told reporters the government might provide more incentives to the Panhua Group, which expressed interest in investing $3.5 billion into a steel manufacturing complex in the Philippines.
“We’ll discuss internally with the agencies, even with the President [Rodrigo Duterte], those assistance [we could give] aside from the usual incentives that we give out under PEZA (Philippine Economic Zone Authority),” Lopez said in Filipino.
“We’ll see. But no commitment [yet],” he added, noting that special rates on land lease and power may be provided to Panhua.
The DTI chief said the management of Panhua was interested in building a facility in the country and it was just waiting for the government to “making it happen”.
“Frankly, it’s banking on the good relationship of the President with China. They were interested before but plans didn’t push through,” said Lopez.
Panhua has three integrated steel mills in China that manufacture flat steel products.
It was reported by PEZA earlier that the Chinese firm eyes to produce 10 product lines for various applications for its Philippine plant.
Locating the steel manufacturing in the Philippines is also strategic for the Chinese firm, now that the United States slaps steel and aluminum products from China with higher duties. (PNA)