$179.8 million Hoa Phat factory to kick off in Hung Yen
$179.8 million Hoa Phat factory to kick off in Hung Yen
Steel-maker Hoa Phat Group Joint Stock Company has revealed plans to kick off the construction of its first VND4 trillion ($179.8 million) steel sheet manufacturing factory in May.
As publicised on Hoa Phat Group’s website, the factory will be located at Pho Noi A industrial park in the northern province of Hung Yen.
The factory is expected to come into operation in early 2018, after 18 months of construction. Its products will include cold-rolled steel sheets, pre-painted galvanised steel sheets, cold galvanised steel sheets, and galvanised steel sheets, at a total capacity of 400,000 tonnes of products per year.
According to the group, the facility will be equipped with modern technology lines imported from Italy, Japan, and Germany.
The able investment into a steel sheet factory aims to meet the increasing domestic demand for pre-painted galvanised steel sheets, while simultaneously reaching to supply galvanised steel sheet materials for Hoa Phat’s steel pipe manufacturing factory in Hung Yen.
The group was established in 1992, initially focusing on trading construction machinery. It currently has 16 subsidiaries operating in numerous sectors, including steel manufacturing, mining, real estate, furniture manufacturing, and animal feed production. Manufacturing steel and related products is a key business line, making up 80 per cent of the group’s revenue.
In 2015, the group earned VND27.8 trillion ($1.25 billion) in revenue, with a profit of VND3.5 trillion ($157.3 million), exceeding by 24 and 8 per cent its targets for last year, respectively.
According to industry insiders, Vietnam’s steel sheet output is estimated at 3.2-3.5 million tonnes with domestic private steel maker Hoa Sen taking up about 40 per cent of the total.
