Category : News
Date : March 04, 2017
Title : Chinese firms eyeing PHL investments
Article : FIVE Chinese firms have expressed interest in exploring opportunities in the Philippines’ aviation, oil downstream, renewable energy, iron and steel, and shipbuilding/ship repair industries, according to the Board of Investments (BoI).

In a statement, the BoI said the companies from China, one of the Philippines’ biggest trading partners, presented letters of intent (LOI) to the agency on Friday.

These companies were the Aviation Industry Corporation of China (AVIC) International Aero-development Corp.; Liaoning Bora Enterprise Group Co., Ltd.; Huili Investment Fund Management Co., Ltd.; Dalian Wanyang Heavy Industries Co., Ltd.,;and YiDingTai (YDT) International.

AVIC International, a large state-owned enterprise that manufactures helicopters, aircraft and aviation products, is exploring opportunities in industrial cooperation for aerospace parts manufacturing, aviation maintenance and training.

It also plans to coordinate with local partners for parts manufacturing, maintenance-repair-overhaul (MRO) facilities, and other industrial sectors.

Liaoning Bora Enterprise Group Co., Ltd. and its Philippine partner, meanwhile, agreed on a joint venture in the construction and operation of an oil storage terminal, refinery projects, and allied industries in the Philippines, among others, worth $3 billion.

On the other hand, Dalian Wanyang, in partnership with the Philippine government and the private sector, is conducting feasibility studies for a 4,000-5,000-metric ton waste-to energy-facility that can generate up to 312 megawatts of power using solid waste as raw materials, with preliminary results ready by the end of the month. The company aims to invest in two sites of waste-to-energy facilities in the Philippines using gasification technology worth $2.8 billion and employing at least 4,500 workers by 2022.

Meanwhile, Dalian Wanyang’s affiliate YDT International is also conducting feasibility studies to invest in the development of a shipbuilding and ship repair (SBSR) facility with a local firm -- a project worth $1.5 billion which will employ at least 2,000 people by 2022.

As for Huili Investment Fund Management, the firm is setting up an integrated steel mill to support the Philippines’ bid to be a major producer of high-quality and safe steel products by 2030. The company’s two-phased project which targets a production of 3 million metric tons of rolled steel. It is worth $3 billion and will employ at least 6,000 by 2022.

“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,” Trade Secretary and BoI Chairman Ramon M. Lopez said in the statement.

Trade Undersecretary for Industry Development and BOI Managing Head Ceferino S. Rodolfo said these projects are deemed “to further spur industrial development across the regions of the country including those in the countryside.”

Approved inflows from China from the country’s investment promotion agencies reached P1.52 billion in 2016. Meanwhile, data from the Philippine Statistics Authority showed bilateral trade between the Philippines and China reached $21.2 billion in 2016, accounting for 15.4% of the country’s total trade. -- J.C. Lim