Panhua wants to pay for the price of 300-has plant »Manila Business Bulletin

By Bernie Cahiles-Magkilat

Panhua Group, a Chinese steel company which has been proposed to invest $ 3.5 billion in integrated steel complex in Mindanao, has 300,000 acres of planting in the Phividec Industrial Estate in Misamis Oriental.

Charito B. Plaza, Director-General of the Philippine Economic Zone Authority (PEZA), is one of the new groups of Chinese investors seeking the best of the world. on goods manufactured in China.

Plaza said that it would be reduced to P40 per square meter from P150, but the Chinese firm would like to further reduce the lease rate.

"They are used in Vietnam and China," said Plaza. Besides, it says, investors in China and in other countries. With the country's high cost on power, water and telco and lesser incentives compared to neighboring countries, Panhua hopes to offset this disadvantage in terms of lower lease rates for their factory.

Panhua has proposed to produce products for local and export market.

Meantime, Plaza Said

"This is due in part to the trade between China and the US with these tariffs for these countries," she said.

However, Plaza said that because of the uncertainties of the Bill, which seeks to overhaul the country's tax incentives to investors, these firms are holding off their plans.

Plaza, however, refused to divulge the identities of these potential investors but said two are engaged in electronics, one in industrial production tools, and one Taiwanese garment firm.