Chinese steelmaker HBIS Group Limited and Filipino steel major SteelAsia Manufacturing Corp. have signed a memorandum of understanding for the installation of their first integrated iron and steel mill in Lemery, Batangas, in the Philippines, according to a statement issued by SteelAsia.
Under the memorandum of understanding, HBIS Group and SteelAsia will invest about $1 billion for the first phase of the Batangas plant.
“As we pursue a number of strategic projects, an important investment priority is the establishment of the first-ever modern, environment-friendly integrated steel mill project in the Philippines. This is pursuant to the vision of President Duterte to establish the first integrated iron and steel plant during his term, which will allow the country to produce basic iron and steel products, including flat products. These are currently not being produced in the Philippines,” said Ramon Lopez, secretary of the Department of Trade and Industry. He added this partnership of Filipino and Chinese companies will support the country’s bid to be a major producer of high quality and safe steel products by 2030.
Mr. Lopez also added that another Chinese steelmaker, Panhua Group, is seeking to invest in an integrated steel producing project in the Philippines.