The US and the Philippines are planning to develop a 1618ha industrial hub within the Luzon Economic Corridor to reinforce supply chains.
US Under Secretary of State for Economic Affairs Jacob Helberg said the location would be designated by the Philippines as an Economic Security Zone.
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The project is intended to expand production of inputs viewed as important to US and global supply chains.
It is expected to operate as an investment acceleration hub guided by market demand, the host country’s strengths and the requirements of allied networks.
Officials described the Economic Security Zone as part of a wider effort to increase capacity for key supply chain inputs.
“The Economic Security Zone is part of a broader strategy to surge production for inputs vital to US supply chains. It is expected to serve as a purpose-built platform for allied manufacturing – an investment acceleration hub where the specific industrial activities are shaped by market demand, host-country comparative advantages, and the evolving needs of the allied network”, according to the press statement from the US State Department.
Positioned in the Luzon Economic Corridor, the proposed hub is set to draw on the Philippines’ location in the Indo-Pacific, its skilled labour pool and its strategic alignment with the US.
The two governments plan to create a joint governance framework intended to support the site’s longer-term development, with an emphasis on sovereign alignment and shared economic gains.
The zone is also expected to pair US legal and institutional standards – such as enforceable contracts, clear regulations and dispute resolution mechanisms – with access to the Philippines’ workforce, mineral resources and energy assets.
Philippine reserves of nickel, copper, chromite and cobalt were cited as materials of importance to global supply chains.
The Luzon Economic Corridor is described as a co-ordinated investment programme spanning transport, energy, digital infrastructure and advanced manufacturing.
The planned Luzon hub is intended to be the first component of a broader network of industrial locations, logistics routes and financial arrangements under the Pax Silica Initiative, which aims to create an integrated manufacturing system across multiple countries.
