Panhua Group, a titan in China's steel industry, is poised to make a monumental impact on the Philippine economy with its $3.5 billion manufacturing plant in Maasim, Sarangani Province. This ambitious project, developed in collaboration with the Alsons Group, is scheduled to begin operations by the first quarter of 2025, signaling a new chapter in the Philippines' industrial growth. The plant is expected to produce up to 10 million metric tons of steel annually once fully operational, offering a substantial boost to the country’s manufacturing capabilities.
The Sarangani plant represents a significant commitment from Panhua, both in terms of investment and job creation. Panhua Group chairman Li Xinghua has confirmed that the project will generate 25,000 jobs, with a strong emphasis on employing local talent. At least 20,000 positions will be reserved for Filipinos, reflecting the company's dedication to contributing to the local economy. To further enhance this workforce, Panhua has established a training program for students in Jiangsu Province, China, providing them with the skills needed to join the factory. Additionally, Filipino students from local universities and colleges will be invited to participate in exchange programs aimed at honing their technical expertise.
Beyond the steel plant, Panhua Group's involvement in the Philippines extends to other sectors and regions. Li Xinghua expressed the company’s optimism about the Philippine market, revealing plans to establish a presence in up to 10 industrial parks and ecozones across the country. This includes potential investments in Metro Manila and Cebu, demonstrating Panhua’s long-term commitment to the Philippines. Moreover, the company plans to introduce its Hualong pickled vegetables, featuring a variety of flavors, to the Philippine market, further diversifying its business interests in the region.
Li Xinghua’s enthusiasm for the Philippines is evident not only in Panhua’s investments but also in his personal advocacy. The chairman humorously refers to himself as the "unofficial Philippine ambassador to China," a title he takes seriously. His office in Zhangjiagang, China, is adorned with photographs of him alongside several Philippine presidents and trade secretaries, highlighting the deep ties he has cultivated with the country over the years. His office also prominently displays the Philippine and Chinese flags, symbolizing the close relationship he envisions between the two nations.
Despite the challenges posed by geopolitical tensions, Li remains steadfast in his efforts to attract more Chinese investors to the Philippines. He has been actively engaging with potential investors, although he acknowledges that the current political climate has made some cautious. Nevertheless, Li is determined to continue his advocacy, confident that the Philippines offers substantial opportunities for growth and collaboration.
The manufacturing plant in Sarangani, once fully operational, will be a game-changer for the region and the Philippines as a whole. The facility is set to produce a wide range of steel products, including galvanized steel, color-coated steel coils, and steel slabs. The initial phase will see an output of two million metric tons, with production ramping up as the plant reaches full capacity. This large-scale production is expected to meet both domestic demand and support exports, bolstering the Philippines' position in the global steel market.
Alsons Group, Panhua’s local partner, is also playing a critical role in the project’s success. The company has a pending application with the Philippine Economic Zone Authority to expand the Kamanga Agro-Industrial Ecozone Development to include the 92-hectare site that will house the Panhua manufacturing plant. This expansion is a key element of Alsons’ broader strategy, which includes the Sarangani Energy Corp.’s P27.5 billion coal-fired plant, also located within the KAIEZ. The synergy between Panhua and Alsons underscores the strategic importance of this venture, both for the companies involved and for the region’s economic development.
