Hesteel Group, a Chinese iron and steel manufacturing conglomerate, is investing US$4.4 billion in the Philippines to set up a joint venture, The Paper reported.
The second largest steel group in China is planning to bond with Steel Asia Manufacturing Corporation to set up an enterprise that integrates iron making, steel making, rolling and deep processing.
It will take three to five years to build the factory in Cagayan de Oro City, Mindanao. Annual production is expected to reach eight million tonnes of iron and steel.
The Philippine Minister of Trade and Industry Ramon Lopez said it is by far the largest investment project involving China and the Philippines.
This project is being touted to help the country achieve the “Steel Dream,” promoting the overall development of the manufacturing industry, further increasing export capacity and helping reduce the trade deficit.