Chinese car manufacturer to invest $1B in RP

A Chinese car manufacturer is planning to invest $1 billion for an assembly plant in the country.

“We are already in serious negotiations with the manufacturer. They have expressed genuine interest in putting money here,” Francis Chua special envoy for Chinese investment and trade told The Star in an interview.

According to Chua, the slowdown in the global economy has not dampened the investment behavior of the firm.

The investment is being seriously considered in spite of the move of car manufacturers to lower sales expectations for this as a result of the slowdown in world demand specifically the US.

During the visit of President Arroyo in China last August, she has scored $6.4 billion worth of investment commitments in housing, cement, mining, and manufacturing.

The largest investment is from Sunshine 100 at $5 billion for a housing development.

Sunshine has an existing exposure in the Philippines under a joint venture undertaking with a local partner.

Trade Secretary Peter B. Favila said the plan is to enter the housing market across all categories – low cost, middle market and high-end.

Sunshine has signed a memorandum of agreement with the Philippine Retirement Authority (PRA) to build housing units for retirees.

Meanwhile, China Fiber Corp. will invest $1 billion for a thread manufacturing plant using banana and palm fibers to produce thread that will be used in the manufacture of clothing. The plant, which will be set up in Davao, is expected to produce 20,000 metric tons of thread annually.

Another investment worth $300 million worth of investment will be from the Fujian Loonglin Group Co., Ltd. for a cement manufacturing plant.

Fujian chief executive officer Yujian Xu has expressed a desire to open a cement plant in Antipolo City. The entry of Fujian, one of China’s biggest cement manufacturers producing high-yield, quality cement in the local cement industry could benefit the real estate sector of the economy in the country.

The Wei Wei Group plans to increase its investments in the Philippines through its domestic partner, Golden Harvest, for the construction of a $100-million nickel smelting plant in Zambales.