A Chinese company is investing $100 million for the construction and development of a green textile industry park at the Cagayan Special Economic Zone and Freeport.
In a news statement issued on Tuesday, the Cagayan Economic Zone Authority said China Zhejiang Guannan Group is finalizing the terms for its $100-million textile- production facility in the economic zone. Officials of the firm were in Manila this week to prepare the memorandum of agreement (MOA) with the Ceza.
Ceza Administrator and Chief Executive Officer Raul L. Lambino said the new Chinese venture is a “bold [venture] since it will break new ground” in the economic zone. The Ceza is trying to diversify its industry portfolio currently dominated by financial technology firms.
Once China Zhejiang enters the economic zone, it will be classified as a locator. Lambino said up to 10,000 hectares of land in Sta. Ana, and other towns in Cagayan could be developed to accommodate the requirements of the green textile industrial park.
He added China Zhejiang will build its own power and water plants, sewerage-disposal facility and waste-processing plant, among other infrastructures needed to operate the industrial park. The project is now awaiting approval from the Ceza board of directors.
China Zhejiang is engaged in textile production, as well as in real-estate development across Asia. Lambino also claimed the firm could diversify its investment portfolio in the country. After the textile production facility, he said, it might consider developing townships and real estate, following its successful projects in Hong Kong, Shanghai and Shaoxing.
Last Friday Lambino said growth in the economic zone will be investment-driven to ensure the Ceza’s diversified industry portfolio. He added the agency will not rely on cryptocurrency and blockchain operations for its revenue stream, as it expands its offering to industrial and tourism investments.