The Cagayan Economic Zone Authority (Ceza) is in talks with a Chinese group to put up a $100-million “green textile” industry park, the agency said yesterday.
Ceza said the China Zhejiang Guannan Group had sent a five-man mission to the Philippines this week, when it signed a memorandum of understanding (MOU) with the agency.
This is according to Ceza senior deputy administrator Ray Roquero, who said in an interview that both sides would still have to sign a memorandum of agreement (MOA) to make it official.
The MOA, which will have to be approved by the board of directors of Ceza, is the “definitive agreement,” while the MOU set the terms or intentions for the project.
Ceza Administrator and CEO Raul Lambino said that up to 10,000 hectares of land in Santa Ana and other neighboring towns could be developed to accommodate the requirements of the green textile industry park.
This group adds to a number of Chinese companies that have expressed interest in setting up shop in Cagayan, including a group that intends to put up an integrated resort and casino.
On top of the production facilities, the textile industry park will also build its own power plant, water plant, sewage disposal plant, waste processing plant and other facilities and infrastructure, Lambino added.
The Chinese firm will also invest heavily in the development of townships and real estate following its major projects in Hong Kong, Shanghai and Shaoxing.