Chinese Companies To Invest In PH Aviation, Oil, Renewable Energy, Iron, Steel, Shipbuilding Industries Under Pres. Duterte

Chinese businessmen remain upbeat in Philippine investment prospects as five Chinese companies presented on March 3, 2017, their Letters of Intent (LOI) to the Philippine Board of Investments (BOI), signifying their keen interest in further exploring business opportunities in the country’s aviation, oil downstream, renewable energy, iron and steel, and shipbuilding/ship repair industries.

  

Trade Secretary and BOI Chairman Ramon Lopez welcomed the expression of interests of the Chinese businessmen saying the positive gesture is a concrete proof of the continued confidence of foreign investors in the country’s sustained strong macroeconomic fundamentals.

“Together with further building the competitiveness of our local industries and our intensive investment promotion efforts, international investors have gained greater awareness of our strong economy and the country’s competitive advantages,” Secretary Lopez said.

“China remains a strong investments partner of the Philippines, and we are positive that these LOIs will sustain the level of interests and open up more business opportunities for the Chinese investors,” the Trade Chief said.

Trade Undersecretary for Industry Development and BOI Managing Head Ceferino Rodolfo received and noted the LOIs of Chinese firms namely Aviation Industry Corporation of China (AVIC) International Aero-development Corporation, Liaoning Bora Enterprise Group Co., Ltd., Huili Investment Fund Management Co., Ltd., Dalian Wanyang Heavy Industries Co., Ltd., and YiDingTai (YDT) International.

“These projects are seen to further spur industrial development across the regions of the country including those in the countryside. At the same time, with more business activities happening, we also provide better and quality job opportunities for our countrymen,” Undersecretary Rodolfo said.

  

AVIC International Aero-development Corp., an ultra large state-owned enterprise in China, focusing on the manufacture and provision of helicopters, aircraft and aviation related products, equipment and services is exploring opportunities in industrial cooperation for aerospace parts manufacturing, aviation maintenance and training.

The company also plans to cooperate with local partners on aerospace parts manufacturing, maintenance-repair-overhaul (MRO) facilities and other industrial sectors.

  

Meanwhile, Liaoning Bora Enterprise Group Co., Ltd. and its Philippine partner agreed on a joint venture in the construction and operation of a retail network, oil storage terminal, refinery project the start of commercial operation.

Dalian Wanyang, on the other hand, is currently doing feasibility studies for a 4,000-5,000 metric tons waste to energy gasification project generating up to 312 megawatts of power using solid waste collected from homes and businesses using state-of-the-art technology, with preliminary results ready by the end of March 2017.

This in partnership with the Philippine government and private sector entities to reach its goal of investing in two sites of waste-to-energy facilities in the Philippines using gasification technology amounting to USD$2.8 Billion and employing at least 4,500 workers by 2022.

Another firm YDT International, an affiliate company of Dalian Wanyang Heavy Industries Co., Ltd. Choose the Philippines as its location for the development of shipbuilding and ship repair (SBSR) facility frontier-island, regional size vessels with 15,000 deadweight tons and below, including advanced ship/vessel designing, manufacture, repair, sales and financial support.

YDT is conducting feasibility studies on investing in an SBSR facility with a Philippine company worth USD$1.5 Billion and employing at least 2,000 by 2022.

Initial results of the study will be in March 2017.

Huili Investment Fund Management Co., Ltd is setting up a world-class integrated steel mill, sharing its advanced technological know-how in support of the Philippines’ bid to be a major producer of high-quality and safe steel products for by 2030.

The company intends to partner with the Philippine government and private sector entities to implement a two-phased project to realize a production output of 3 million metric tons of rolled steel worth USD$ 3 Billion and employing at least 6,000 by 2022.

The firm intends to engage and to train Filipinos to become specialists in the operation and management of the integrated steel mill.

Approved investments from China from the country’s investments promotion agencies reached Php1.52 Billion in 2016.

China continues to be one of the country’s biggest trading partners.

Data from the Philippine Statistics Authority (PSA) showed that bilateral trade between the Philippines and China reached US$21.2 billion in 2016, accounting for 15.4% of the country’s total trade.

Export output to China reached US$6.2 billion while imports recorded US$15.2 billion, the largest among all countries.

Source: PIA.Gov