The Strategist

Chinese steel giant invests $ 4.4 billion in Philippines

12/18/2018 - 11:24

The Chinese metallurgical conglomerate Hesteel Group will invest $ 4.4 billion in the Philippines to create a joint venture, reports The Paper.

The second largest steelmaking company in China plans to set up a joint venture with Steel Asia Manufacturing Corporation, which combines iron, steel, steel rolling and deep processing.

The construction of a plant in the city of Cagayan de Oro on the island of Mindanao (Philippines) is expected to take from three to five years. It is planned that annual production will reach 8 million tons of iron and steel.

The Minister of Trade and Industry of the Philippines, Ramon Lopez, said that this is by far the largest investment project involving China and the Philippines.

It is noted that this project may contribute to the overall development of the manufacturing industry in the country, increase export potential and reduce the trade deficit.

In November, Chinese President Xi Jinping made a landmark visit to the Philippines. It was a two-day tour, the purpose of which was to emphasize that Beijing is the region’s best partner in the field of trade and development.

"We outlined the future course of China-Philippine relations and drafted an ambitious plan for their development," Xi said at a joint press conference with Philippine President Rodrigo Duterte.

Xi said both leaders agreed on a common "vision" that "set a clear course for Sino-Philippine relations" and "sends a clear signal to the world that our two countries are partners in a quest for common development."

The Chinese leader also described the two countries as "natural partners with a common destiny," while emphasizing that his country "will continue to do everything possible to help and support the Philippines."


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