Chinese steelmaker Panhua Group Co., Ltd. will launch the operations of the first phase of its galvanizing line in the Philippines within the first half of 2026, a major milestone for its $3.5-billion integrated steel project in Sarangani province.

Department of Trade and Industry Secretary Ma. Cristina Roque discussed the project’s progress with Panhua Group officials during a meeting on May 21, 2026 on the sidelines of the APEC Ministers Responsible for Trade Meeting in Suzhou.

The galvanizing line forms part of the project’s Phase 1 operations. Panhua Group earlier launched its first color-coated steel production line on June 28, 2025.

The integrated steel project combines steel production with dedicated utilities and port facilities across the industrial chain. The company is also preparing for Phase 2 and Phase 3 expansions.

During the meeting, Panhua Group chairman Xinhua Li thanked the Philippine government for its continued support, citing confidence in the country’s manufacturing potential.

Roque said strengthening the domestic steel industry is crucial to supporting infrastructure development and key downstream industries such as construction, transport, shipbuilding and infrastructure manufacturing.

The project will generate jobs, enhance workforce skills, support technology transfer and create opportunities for local suppliers, particularly in Mindanao.

The DTI said the government is pursuing a whole-of-government approach to support the project. National agencies, local government units and investment promotion bodies are coordinating to streamline operations and address manufacturing requirements.

Panhua Group intends at least 70 percent of the project’s output for export markets, providing an additional push to the country’s manufacturing and export sectors.