DTI, Panhua advance USD 3.5B Sarangani steel project

SUZHOU, China — The Department of Trade and Industry and Chinese steel manufacturer Panhua Group Co. Ltd. reaffirmed their long-term economic and industrial partnership as the company’s USD 3.5 billion integrated steel project in Sarangani Province moves closer to full Phase 1 operations.

DTI Secretary Ma. Cristina A. Roque met with Panhua Group officials on May 21, 2026, on the sidelines of the Asia-Pacific Economic Cooperation Ministers Responsible for Trade Meeting in Suzhou, China.

The discussions centered on the progress and future expansion of Panhua’s integrated steel project, one of the largest foreign investments in the Philippine steel sector.

The Sarangani venture spans the full industrial chain by combining steel production with dedicated utilities and port facilities.

Panhua launched its first color-coated steel production line on June 28, 2025.

The facility’s galvanizing line is also nearing completion, setting the stage for full Phase 1 operations to become completely functional within the first half of 2026.

Panhua is also mapping out Phase 2 and Phase 3 expansions, signaling what the DTI described as a strong, long-term commitment to the Philippines.

During the meeting, Panhua Chairman Xinhua Li expressed appreciation for the Philippine government’s support, which the DTI said reflected the company’s confidence in the country’s manufacturing potential.

Roque emphasized that a robust domestic steel industry is vital to the Philippines’ broader economic and infrastructure goals.

The DTI said a reliable local steel supply would directly support downstream sectors, including construction, transport, shipbuilding, and infrastructure manufacturing.

The project is also expected to serve as a major economic catalyst for Mindanao and nearby regions.

According to the DTI, the steel venture is already generating local employment, enhancing workforce skills, fostering technology transfer, and creating new opportunities for Filipino workers and local suppliers.

The administration is applying a “whole-of-government” approach to support the project.

Under this approach, national agencies, local government units, and investment promotion bodies work together to streamline operations and efficiently address manufacturing requirements.

The DTI and its partner agencies said they remain committed to maintaining a competitive and business-friendly environment through policy support and supply chain development.

Government officials also encouraged Panhua to continue working with local stakeholders to ensure the project’s sustainable growth.

The project is expected to boost exports, with at least 70 percent of its products to be sold to the international market.

The Sarangani facility is located in Maasim, Sarangani, where Panhua has been developing an integrated steel complex as part of a wider industrial investment in Mindanao.

Industry reports said the USD 3.5 billion project is designed to include a steel plant, port operations, an industrial park, and supporting power facilities, underscoring its role as a major manufacturing hub.

The DTI said it stands ready to support Panhua’s long-term operations as the government works to build a more resilient industrial base and strengthen economic ties between the Philippines and China.