Chinese group mulls building steel plant in the Philippines

China's Baiyin Nonferrous Group Co agreed to consider setting up a stainless steel plant in the Philippines that could cost as much as $700 million, as part of a wider push to boost trade and economic ties between the two countries.

The State-owned firm will look at various resources projects in the Southeast Asian nation under a memorandum of understanding signed with Global Ferronickel Holdings Inc, the Philippine producer said in a stock exchange filing on Friday. Under the deal, signed during President Rodrigo Duterte's state visit to China, Baiyin may also provide trade financing to Global Ferronickel's Ipilan mine in Palawan province, it said.

"We recognize the importance of promoting close cooperation with China to spur economic growth in the country," Global Ferronickel Chairman Joseph Sy said in a separate statement. "We see Baiyin as a strong partner who will play a vital role with us in creating greater value added in the nickel value chain."