Hoa Phat to increase production line
Hoa Phat to increase production line
The Ministry of Industry and Trade has green-lighted the proposal from domestic steel maker Hoa Phat to increase the production of iron billet at its existing factory in Hai Duong province, which the ministry has included in its master plan to 2020 with a vision to 2025.
Specifically, the Hoa Phat complex will add a capacity of 550,000 million tonnes of steel billet with an estimated capital of VND2.5 trillion ($119 million). The expansion is expected to run to early 2016 after starting construction at the end of this year.
Hoa Phat is one of the leading private steel-makers in Vietnam. It started building the first phase of its Hai Duong steel factory in 2007. Two years later it was operational. In 2012 it built the second phase, which went into operation at the end of 2013 with a capacity of 500,000 tonnes a year.
The People’s Committee of Hai Duong, in a document sent to the Ministry of Industry and Trade, said the province supported the project because Hoa Phat was already ensured material input sources, power supply and was planning to apply advanced production technology. Additionally, the expansion would not require any additional land, as the current site has room to spare.
Amid difficulties in the steel sector, Hoa Phat Group has had a very successful first quarter, according to its annual report.
Chairman Tran Dinh Long said, “While many enterprises have cut down on the number of employees, in 2013 the grup directly employed 10,000 and had another 20,000 indirect employees nationwide.”
Steel production continues to be the chief contributor to the group’s total revenue and profit. In 2013, its steel output was 727,000 tonnes, an increase of 17 per cent compared to 2012, while sales of construction steel grew to 699,000 tonnes, an increase of 14 per cent from 2012.
Hoa Phat has set a production volume target of 800,000 tonnes of construction steel for the domestic market while it has continuously expanded its base export market. In other segments of its industrial manufacturing, the group is aiming for a 15-20 per cent growth in revenue.
vir
