HEAD Int'l Holdings to relocate China plant to Misamis Oriental

CAGAYAN DE ORO CITY - The world's leading manufacturer of HEAD tennis balls, racquets and other leading international sports products, would relocate its manufacturing plant from China to Misamis Oriental starting 2019 at a cost of P2.4-billion.

China firm to invest $4.4-billion in Mindanao steel plant

Photo shows the officials of the project proponents after the MOU signing: (Seated from left) are HBIS chairman Yu Yong, Huili Investment Fund chairman Meng Xiaosu, Trade Undersecretary for Industry Development and BOI managing head Ceferino Rodolfo, Defense Secretary Delfin Lorenzana, and Steel Asia chairman and CEO Bejamin Yao.  Winessing the signing are: (Standing from left) Trade Secretary Ramon Lopez (center), China Embassy of the Philippines counselor Jin Yuan (fourth from right) and Hebei Provincial Government of Chine vice governor Li Qian (fourth from left).

MANILA, Philippines (15 Dec. 2018) - One of the world's largest steel makers from China, HBIS Group Co. Ltd., is set to invest $4.4-billion to build an integrated steel complex in Mindanao.

During the signing of the memorandum of understanding (MOU) yesterday for the implementation of the project, Trade Secretary Ramon Lopez said the amount to be spent by HBIS would be the biggest industrial investment from China to the Philippines.

The MOU was signed by HBIS Chairman Yu Yong, Huili Investment Fund Co. Ltd., Chairman Meng Xiaosu, Steel Asia Manufacturing Corp., Chairman and chief Executive Officer Benjamin Yao, Defense Secretary Delfin Lorenzana, and Board of Investments managing head Ceferino Rodolfo.

HBIS, a whole-state-owned company in Shijiazhuang City, Hebei Province, is the second largest steelmaker in China and third largest in the world, producing appliance grade and automotive grade steel products.

Huili Fund, meanwhile, is a private equity firm based in Beijing, China, specializing in investing in real estate, finance and industries with a competitive edge.


Steel Asia, a top rebar producer in the Philippines, has six production units located in Luzon, Visayas, and Mindanao.

The project to be implemented by the parties, will occupy a 305-hectare land inside the PHIVIDEC Industrial Estate in Mindanao, with Atty. Franklin M. Quijano, as Administrator and Chief Executive Officer, at its helm.

It will have facilities related to port operation, sintering, coking, pelletizing, iron-making, steel-making, and steel rolling.

Phase 1 of the project covers the production of 4.5 million tons of hot rolled coils (HRC) and 600,000 tons of slabs with $3-billion worth of investments, while Phase 2 involves increasing the steel manufacuring capacity to eight-million metric tons.

Construction and ramp-up period of the project is expected to take three to five years.

Lopez said the project would create 10,000 jobs in the first phase, and about 40,000 jobs in the next phase.


"This project is very important to our industrial development and will allow us to pursue President Duterte's vision of having a globally competitive integrated iron and steel industry to support the growing economy, alleviate poverty, and to create jobs for every Filipino," Lopez said.

He said the project would also help reduce the trade deficit by as much $2.3 billion in Phase 1 and up to $4.4-billion in succeeding phases.

"With this integrated steelmaking facility, the country will be able to capture a large part of the value [chain] for the manufacture and assembly of appliances, automotive assembly, construction materials, shipbuilding, heavy equipment manufacturing, among others," he said.  [Louella Desiderio, The Philippine Star]

Iligan to answer call of China steel plant's labor needs

ILIGAN CITY - Iligan City Lone District Representative Frederick Siao committed on Friday to mobilize his constituents for the provision of skilled and technical manpower needed for the $3.5 billion integrated steel plant Chinese investors intend to build near his district.

Panhua Group Co. Ltd. to invest $3.5 billion in Mindanao steel factory

MANILA - Trade Secretary Ramon Lopez said Panhua Group Co. Ltd., of China will set up a 305-hectare integrated steel manufacturing plant at the Phividec Industrial Estate of the Misamis Oriental-Special Economic Zone in Tagoloan, Misamis Oriental.

Chinese steel firm seeks cheaper rent in Phividec

CAGAYAN DE ORO CITY (25 Oct 2018) - Chinese steel conglomerate Panhua Group is asking the government for better lease terms on a 300-hectare property within the Phividec Industrial Estate in Misamis Oriental for a proposed $3.5-billion integrated steel manufacturing plant.

Philippine Economic Zone Authority director-general Charito Plaza said Panhua was one of the Chinese companies seeking to relocate to the Philippines to escape the high tariff imposed by the US on China-made products.

Plaza said locators in China and Vietnam were enjoying incentives, such as the low lease for the first 25 years on top of affordable power cost and other subsidies.

She said to make up for the high power rates in the Philippines, Panhua was asking for lower rental rates.

PEZA already reduced Panhua's rent to P40 per square meters from P150, but the Chinese firm wanted a further reduction.

Panhua proposed to produce ten types of steel products in its Mindanao plant for the local and export markets.

Plaza said PEZA was also reviewing the proposals of three Chinese investors who were interested to relocate to the Philippines.

"This is due in part to the trade war between China and the US with soaring tariffs for products traded between these nations," she said.

PEZA expressed concern that the proposed Tax Reform for Attracting Better and High-Quality Opportunities, or 'Trabaho bill', might affect the companies' desire to relocate to the Philippines.


She said the Trabaho bill would dramatically alter the current set of incentives given to foreign investors. [Othel V. Campos, Manila Standard.net]

$3.5-B integrated steel mill soon to rise at Phividec

PANHUA Group, China's leading integrated steel producer and exporter to the US, is set to invest a total of $3.5-billion for an integrated steel mill inside Phividec Industrial Estate in Misamis Oriental.  The steel complex will manufacture steel products of various applications, complete with a modern port and a 300-hectare industrial park.

Gardenia's 1st Mindanao bread plant to open at Phividec

CAGAYAN DE ORO CITY - GARDENIA BAKERIES Philippines, Inc.'s first bread factory in Mindanao will be operational by the third quarter this year, the company announced on Tuesday.

Gardenia President Simplicio P. Umali, Jr., in a statement, said the plant, located at the PHIVIDEC Industrial Estate in Misamis Oriental, would ensure a more stable supply, as well as allow the the firm to expand its market in the southern island.


Gardenia bread are currently shipped to Mindanao from the Cebu plant.  

"The construction of our bread plant in Mindanao is well underway and now almost halfway to completion," Mr. Umali said.

The P1-billion facility will be under the management of Nutrimax Fresh-Baked Inc., a wholly owned subsidiary of Gardenia International, Pte. Ltd. Singapore, Gardenia's parent company.  [BusinessWorld]