Philippines, China's Panhua strengthen ties with $3.5b steel project
This is one of the largest foreign investments in the Philippines' steel sector.
The Philippines’ Department of Trade and Industry (DTI) and China-based Panhua Group Co., Ltd. have reaffirmed their partnership on a $3.5b integrated steel project in Sarangani Province, as construction and initial operations continue.
This comes as Trade Secretary Ma. Cristina A. Roque met with Panhua Group on 21 May 2026 on the sidelines of the Asia-Pacific Economic Cooperation Ministers Responsible for Trade Meeting in Suzhou.
The project covers an integrated steel complex that includes steel production facilities, utilities, and port infrastructure, and represents one of the largest foreign investments in the Philippine steel sector.
Panhua Group launched a colour-coated steel production line on 28 June 2025, with its galvanising line remaining under completion.
The company expects Phase 1 to become fully operational in the first half of 2026, whilst plans for Phase 2 and Phase 3 expansion have already been outlined.
Panhua Group Chairman Xinhua Li said the company appreciates government support for the project.
Roque said the development supports efforts to build a domestic steel industry and expand supply for infrastructure sectors, including construction, transport, shipbuilding, and manufacturing.
The project will employ workers in Mindanao and neighbouring regions and includes training and technology transfer components.
The government has applied a whole-of-government approach involving national agencies, local government units, and investment promotion bodies to support implementation and resolve operational requirements.
The DTI said it will support continued development of the project and supply chain requirements, with the project exporting at least 70% of output to international markets.
