Hoa Phat to break into agriculture
Hoa Phat to break into agriculture
Hoa Phat Trade and Production of Feed Company, a subsidiary of Vietnam’s leading steel maker Hoa Phat Group, will start its operation officially in the first haft of this year.
Located at the Pho Noi A Industrial Park in the northern province of Hung Yen, the factory has the total chartered capital of VND300 billion ($14.3 million) and the capacity of producing 300,000 tonnes of animal feed per year. The revenue target is the expected amount of VND3 trillion ($140 million) to be collected in the course of the next three years.
According to Hoa Phat’s representative, beside the key steel sector, expansion to the agricultural sector will form the backbone of the group’s long-term strategy, elevating it to primary importance and providing focus in both human resources and financing activities.
Being a tycoon in trading furniture, steel and property in Vietnam, Hoa Phat currently is encroaching on agriculture, including the breeding of pigs and poultry, processing animal feed, the production of fertilisers and nitrogen compounds and trading agricultural equipment.
In 2014, Hoa Phat’s total revenue hit VND25.5 trillion ($1.2 billion) with the post-tax profit of VND 3.25 trillion ($151.6 million), an increase of 35 per cent and 62 per cent on year, respectively.
In the 2015 financial year, the group’s revenue is forecasted to reach to VND22.5 trillion ($1.05 billion) with the post-tax profit of VND2.3 trillion ($107.3 million).
