Philippines rebar giant SteelAsia and China’s BaoSteel will join forces to build a $2bn factory in the Philippines capable of producing 3 million tons of molten steel, the company said.
“This project will spawn new industries and wean the country from its perennial dependence on imports,” said SteelAsia chief executive Benjamin Yao.
He signed the deal during the Philippines president Ferdinand Marcos Jr’s three-day visit to China this month.
The factory will create around 2,000 jobs, Yao said.
A BaoSteel team will go to the Philippines in February to help look for a location.
SteelAsia currently operates six plants in the country and is set to open a seventh this year in Compostela, Cebu province.