January 18, 2007

Chinese companies makes huge investment to plant corn in Philippines

Chinese companies are investing 240 billion pesos, or US$4.9 billion, in the Philippines to gain access to agricultural commodities among them corn and rice,  the Philippine agriculture secretary, Arthur Yap, said.

The agreements were scheduled to be signed Monday and Tuesday when Prime Minister Wen Jiabao of China visits the Philippines. The deals include commitments from Beidahuang Group, an arm of the Heilongjiang provincial government, Fuhua Group and China CAMC Engineering.

Fuhua Group, based in the city of Zhuhai, in the southern Chinese province of Guangdong, intends to invest US$3.83 billion over five to seven years to develop 1 million hectares of land to grow high yielding strains of corn, rice and sorghum, Yap said.

The agreement will be signed by Fuhua; its Philippine partner, Sterling Paper Group; and the China Development Bank.

The Departments of Environment and Agrarian Reform plans to identify idle lands in the Philippines that Fuhua can develop for corn and rice plantations. Corn production from the venture is expected to reach 14 million tonnes a year in five years, the chairman of Sterling Paper, Henry Lim Bon Liong, has said.

Beidahuang could invest 43.4 billion pesos in corn and rice plantations, an ethanol plant and building facilities to grow flowers and off-season vegetables and fruits, Yap said Sunday.

CAMC, based in Beijing, plans to build an ethanol plant in the southern Philippine province of Palawan, Yap said on Jan. 8.

The company also plans to build a shipyard and cold storage facility, and intends to upgrade parts of the Navotas Fish Port Complex in northeastern Manila, Yap said.