Chinese steel manufacturer Panhua Group Co., Ltd. has reaffirmed its long-term investment commitment in the Philippines during a meeting with Department of Trade and Industry (DTI) officials on the sidelines of the Asia-Pacific Economic Cooperation Ministers Responsible for Trade Meeting held on May 21 in Suzhou, China.
Project Overview
At the center of discussions was the progress of Panhua's $3.5-billion integrated steel project in Sarangani Province, recognized as one of the largest foreign investments in the Philippine steel sector. The project encompasses the entire industrial chain, including steel production, utilities, and dedicated port facilities.
Operational Milestones
Panhua launched its first color-coated steel production line on June 28, 2025, and the facility's galvanizing line is nearing completion. Company officials anticipate that Phase 1 operations will become fully functional within the first half of 2026. Preparations for Phase 2 and Phase 3 expansions are already underway, signaling a sustained commitment to the country's manufacturing sector.
Government Support
Panhua Chairman Xinhua Li expressed gratitude to the Philippine government for its continued support, which he said strengthened the company's confidence in the country's industrial potential. DTI Secretary Ma. Cristina A. Roque emphasized that developing a robust domestic steel industry remains vital to the nation's economic and infrastructure agenda. She noted that a stable local steel supply would support key industries such as construction, transportation, shipbuilding, and infrastructure manufacturing.
Economic Impact
Beyond its industrial impact, the project is expected to serve as a major economic driver for Mindanao by generating jobs, improving workforce skills, encouraging technology transfer, and creating opportunities for local suppliers. The government continues to implement a whole-of-government approach, with national agencies, local government units, and investment promotion bodies coordinating to streamline operations and address manufacturing requirements.
Export and Sustainability
The DTI and partner agencies are committed to sustaining a business-friendly environment through policy support and supply chain development. Officials encouraged Panhua to continue working closely with local stakeholders to ensure the project's long-term and sustainable growth. At least 70 percent of the project's products are expected to be exported to international markets, further boosting the country's export sector. The DTI said it remains ready to support Panhua's long-term operations as the project strengthens industrial development and economic ties between the Philippines and China.
