Chinese steelmaker Panhua Group is on track to commence operations at its new steel facility in the Philippines, marking a significant milestone in the company's international expansion. The project, located in the Kamanga Agro-Industrial Ecozone in Maasim, Sarangani, is expected to begin production by the end of 2024 or early 2025.

The first phase of this ambitious project includes a slab production line with an annual capacity of 2.2 million tonnes, along with supporting facilities. This development is part of Panhua Group's larger $3.5 billion investment to construct a comprehensive steel industrial park in the Philippines, which aims to achieve an annual output of 10 million tons.

The project represents a major foreign industrial investment in the Philippines and is set to significantly boost the country's steel production capabilities. Once operational, the facility will join the growing list of Southeast Asian steel suppliers, potentially reshaping the regional steel market dynamics.

Panhua Group's investment aligns with its "Going Global" strategy and includes plans for a seaport terminal with 2.5 kilometers of shoreline and 300,000-ton berths. The company envisions creating a modern, ecological, and intelligent steel industry cluster that could employ up to 30,000 workers.

As construction progresses, industry observers are keenly watching this development, which could have far-reaching implications for steel supply chains in Southeast Asia and beyond.