Department of Trade and Industry (DTI) Secretary Ma. Cristina A. Roque met with Chinese steel giant Panhua Group Co., Ltd. (Panhua) on May 21, 2026, to reaffirm their commitment to a long-term economic and industrial partnership. The meeting took place on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Ministers Responsible for Trade Meeting in Suzhou, China.
At the center of the discussions was the progress and future expansion of Panhua’s massive $3.5-billion integrated steel project in Sarangani Province. As one of the largest foreign investments in the Philippine steel sector, this mega-project spans the entire industrial chain, combining steel production with dedicated utilities and port facilities.
The venture has already reached major operational milestones. Panhua successfully 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. Looking even further ahead, Panhua is already mapping out its Phase 2 and Phase 3 expansions, signaling a strong, long-term commitment to the country.
During the meeting, Panhua Chairman Xinhua Li expressed his strong appreciation for the support of the Philippine government, resulting in the company’s deep confidence in the nation’s manufacturing potential. Secretary Roque emphasized that a robust domestic steel industry is vital to supporting the country’s broader economic and infrastructure goals. A reliable local steel supply will directly boost critical downstream sectors, including construction, transport, shipbuilding, and infrastructure manufacturing.
Beyond its industrial impact, the project serves as a major economic catalyst for Mindanao and its neighboring regions. It is already generating vital local employment, enhancing workforce skills, fostering technology transfer, and creating new opportunities for Filipino workers and local suppliers. To ensure its ongoing success, the administration is using a “whole-of-government” approach, in which national agencies, local government units (LGUs), and investment promotion bodies work closely together to streamline operations and efficiently address manufacturing requirements.
The DTI and its partner agencies remain fully dedicated to maintaining a competitive, business-friendly environment through policy support and supply chain development. Government officials have encouraged Panhua to continue working hand in hand with local stakeholders to ensure the project’s sustainable growth. The project will also boost exports as at least 70% of its products will be sold to the international market.
Moving forward, the DTI stands ready to support Panhua’s long-term operations, paving the way for a more resilient industrial future and stronger economic ties between the Philippines and China.
