Hoa Phat puts to bed shareholders qualms about environment

March 10, 2017 | 17:09

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A series of questions were raised around the giant Hoa Phat Dung Quat steel complex at Hoa Phat’s annual general shareholders’ meeting today.

Hoa Phat puts to bed shareholders qualms about environment

Hoa Phat Group (HPG) chairman Tran Dinh Long talked down concerns on the environment, saying, “Environment is a top priority,” and explained that HPG has 10 year’s of experience and no incident on its track record related to environmental protection.

“The difference between HPG’s facility and Formosa is heat recovery technology,” said Long.

HPG’s project has an investment total of VND52 trillion ($2.3 billion) and a capacity of four million tonnes per year. The project comprises of two phases and is expected to be completed in four years. The first phase will begin in February and the second in August 2017.

The main products will be construction steel and rolled steel used in manufacturing. The factory is hoped to generate $2 billion of revenue annually, contribute $178.3 million per year to the province’s budget, and create about 8,000 jobs.

Long confirmed the determination at the annual general shareholders' meeting that, “Hoa Phat Dung Quat Steel Complex has a capacity of four million tonnes per year, two million tonnes of long-rolled, and two million hot-rolled steel. It is a part of HPG’s strategy in order to reach a new stature by 2020.”

HPG set a target for 2017 to earn VND40 trillion ($1.8 billion) in revenue and VND6 trillion ($272 million) in after-tax profit.