Hoa Phat Group plans to start the construction of the second phase of the Hoa Phat Dung Quat Iron and Steel Production Complex at the end of the first quarter this year.
|With the new plant, the complex' capacity will be increased to 11 million tonnes per year |
Dinh Van Chung, deputy director of Hoa Phat, announced this at the meeting with State President Nguyen Xuan Phuc.
The complex’ second phase will have total investment capital of VND85 trillion ($4 billion) and produce hot-rolled coil steel (HRC). The plant is expected to come into operation in 2024, increasing the complex’ total capacity to 11 million tonnes per year.
Once completed, the complex will contribute VND18 trillion ($782.6 million) to the state budget.
Besides this, the project is expected to create jobs for about 8,000 employees, strongly promote mechanical and support industries, and contribute to the growth of Quang Ngai Province’s industrial production value and GDP.
The room for profits from HRC is estimated huge, with the market demand for such products been increasing day by day.
Every month, domestic customers offer to buy more than 300,000 tonnes of HRC. However, at maximum capacity, Hoa Phat Group can only create an output of about 250,000 tonnes.
The group receives orders from the US, Canada, Mexico, Italy, Germany, South Korea, Indonesia, and many other markets.
In January, Hoa Phat achieved a crude steel production output of 707,000 tonnes, up 5 per cent over the same period last year.
Sales volume reached 631,000 tonnes, including construction steel, steel billet, and HRC. In which, construction steel accounted for 382,000 tonnes, twice as high as the corresponding period in 2020. HRC also recorded a high volume with 228,000 tonnes.