Posted on 03 Aug 2015
A Chinese trader may set up steel milling operations in the Philippines as the volume of its exports to the Philippine construction sector has been expanding over the last few years.
The Philippine Chamber of Commerce Inc. said China Rizhao Business in Shandong province, China, representing China Rizhao Steel Company Ltd., had been seeking information about the Philippines before a possible business operation in the Philippines.
"Right now, China Rizhao Business is trying to set up a satellite representative office here to manage its growing steel trade with Philippine companies," PCCI chairman emeritus Francis Chua said in an interview over the weekend.
He said China Rizhao Business, more known internationally as Sunshine Co., represents the steel company in its distribution of products abroad. It is a government-owned and managed corporation based in Shandong.
Chua quoted deputy director for China Rizhao Business Wu Naijun that Chinese companies were bullish about business prospects in the Philippines despite the political differences betweenChina and the Philippines.
"In spite of the ongoing political problems, they China Rizhao Business] sent a representative here to process a company strategy to open a satellite office in Manila," he said.
Rizhao steel Wire Co. Ltd. is a large integrated iron and steel complex with a steel production of 14 million metric tons in 2014.
It produces and exports hot rolled steel coil, plates, wire rod, rebar, H-beam, I-Beam and channels, welding pipes and cement.
It exports to more than 30 countries and regions, including South Korea, South East Asia, South America, Europe and Middle East, for use in industries such as automobile, home appliances, petrochemical, machinery, energy, transportation and metalwork.
Chua said Chinese steel manufacturers had shown great interest to do business in the Philippines because of the local construction boom.
China Rizhao Steel exported 1.5 million MT of steel products, mostly rebar, to the Philippines in 2014.
"Because of the building boom, they saw bigger opportunities here [Philippines]. They came to us seeking assistance and from the point of view of PCCI, our mandate is to facilitate trade so we will help those who seek our help," said Chua.
