Hoa Phat Group breaks ground on $380M railway rail-special steel plant in Quảng Ngãi

Hoa Phat Group breaks ground on $380M railway rail-special steel plant in Quảng Ngãi

Initial products are expected to be launched in 2027, making Hoa Phat the first and only producer in Southeast Asia capable of manufacturing these special steel grades domestically.

A artist's impression of the railway and special steel project of Hoa Phat Dung Quat in Vạn Tường Commune, Quảng Ngãi Province. — VNA/VNS Photo

Leading steel producer Hoa Phat Group officially began construction of the Railway Rail and Special Steel Production Plant in the eastern industrial zone of Dung Quất Economic Zone, Vạn Tường Commune, Quảng Ngãi Province, on the morning of December 19.

The ground-breaking ceremony for the project, part of Hoa Phat's strategic expansion into high-technology steel manufacturing, was attended by senior government officials, including Trần Văn Sơn, minister and chairman of the Government Office, and Bùi Thị Quỳnh Vân, deputy head of the Party Central Committee's Organisation Commission. 

The project is positioned as one of the key national works to welcome the 14th National Congress of the Communist Party of Việt Nam. 

The new facility, named Hoa Phat Dung Quat Railway Rail and Special Steel Plant, is designed with an annual production capacity of 700,000 tonnes and a total investment of over VNĐ10 trillion (US$380 million). 

It will be built on nearly 15 hectares within the Eastern Industrial Park of the Dung Quất Economic Zone.

The production line will feature a four-high mill stand system with high flexibility and precision, engineered to ensure product uniformity that complies with international high-speed rail standards.

The plant is planned to manufacture a broad range of high-technology steel products, including high-speed railway rails, urban railway rails, crane rails and various types of special section steel, including U, I, H and V profiles

Initial products are expected to be launched in 2027, making Hoa Phat the first and only producer in Southeast Asia capable of manufacturing these special steel grades domestically.

Production processes at the facility will include rigorous quality control measures.

Finished rails will be produced up to 100 metres in length, with high straightness and flatness, and subjected to laser geometry inspections and ultrasonic internal defect detection to ensure conformity with stringent quality requirements.

Under these technical specifications, the products will comply with demanding global standards and are intended to meet technical criteria used in both heavy industry and transport infrastructure sectors. 

At the ceremony, Mai Văn Hà, director of Hoa Phat Dung Quat's special steel subsidiary, said that the project underscores the company's commitment to supplying domestically manufactured, high-quality steel products for Việt Nam's major transport infrastructure projects. 

The company has prepared both technological frameworks and a skilled workforce to operate and master the new production systems once the plant becomes operational.

Local authorities in Quảng Ngãi Province pledged full support for the project's deployment, emphasising efforts to streamline land clearance, infrastructure support and investment facilitation. 

Provincial leaders cited the anticipated contribution of the facility to the province's industrial and service sectors, as well as to employment and broader economic activity. 

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