According to the country’s Department of Trade and Industry, the project will allow the country to provide for its own basic iron and steel products needs and further supply downstream markets, such as those for sheet, bar, wire rod and wire mesh.

“This project is very important to our industrial development and will allow us pursue President Duterte’s vision of having a globally competitive integrated iron and steel industry, to support the growing economy, to alleviate poverty, and to create jobs for every Filipino,” said Trade and Industry Secretary Ramon Lopez.

The facility, to be built in two phases, will include a port operation, sintering, coking, pelletizing, ironmaking, steelmaking, and rolling and processing facilities. 

The first phase of work calls for construction of facilities that can make 4.5 million metric tons of hot-rolled coil and 600,000 tons of slabs per year. The second phase would increase capacity to 8 million metric tons. 

“This project is very important because it truly represents industrial empowerment. With this integrated steelmaking facility, the country will be able to capture, through this and succeeding phases of the project, a large part of the value for the manufacture and assembly of appliances, automotive assembly, construction materials, shipbuilding and heavy equipment manufacturing, among others,” said Trade and Industry Undersecretary Ceferino Rodolfo.

According to U.S. trade data, the Philippines is dependent on steel imports. In 2016, it produced about 1.1 million metric tons of steel, but imported 8.1 million metric tons. 

Jin Yuan, the Commercial Counselor of the Chinese embassy in the Philippines, told China's state news agency that the project follows cooperation between China and the Philippines under China's Belt and Road Initiative.