Phividec Considers Lease Termination for Controversial Steel Plant in Misamis Oriental
Phividec may boot out raided steel plant from Misamis ecozone
Inquirer
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The Phividec Industrial Authority is contemplating terminating the lease of Philippine Sanjia-Steel Corp. in Misamis Oriental, Philippines, due to alleged violations of labor, immigration, and nuclear safety regulations. Investigations revealed serious concerns about the plant's operations, including the use of substandard steel and the detention of Chinese workers amid accusations of discriminatory treatment.
- 01The Philippine Sanjia-Steel Corp. has been implicated in multiple violations, including nuclear safety and labor regulations.
- 02Sanjia's steel bars were found to be substandard, raising national security concerns regarding infrastructure integrity.
- 03Chinese Embassy officials have accused Philippine authorities of discriminatory treatment towards detained Chinese workers.
- 04Sanjia's operations have faced scrutiny since 2024, with multiple inspections revealing serious regulatory breaches.
- 05The company has a lease contract for 22.6 hectares in the economic zone, with a declared investment of ₱800 million.
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The Phividec Industrial Authority (PIA) is considering the cancellation of the lease for Philippine Sanjia-Steel Corp. due to serious allegations of labor, immigration, and nuclear safety violations. PIA General Manager Joseph Donato Bernedo indicated that findings from an interagency investigation could lead to a review of Sanjia's compliance as a business locator within the Misamis Oriental economic zone. Notably, the company has faced scrutiny since 2024, with authorities uncovering radioactive materials on-site and substandard steel products that pose risks to national infrastructure. The National Bureau of Investigation (NBI) has reported that many of Sanjia's 69 Chinese workers lacked valid work permits, while the company’s steel bars were criticized for their poor quality. The Chinese Embassy in the Philippines has raised concerns over the treatment of these workers, who were detained during a recent raid, alleging discriminatory practices since over 300 Filipino workers were released without detention. The embassy has called for fair treatment and adherence to legal obligations regarding the detained workers. As the situation unfolds, the implications for Sanjia's operations and the broader economic zone remain significant.
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The potential lease termination could lead to job losses for local workers and impact the economic activities in the Misamis Oriental region.
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