VinMetal plans to import one million tonnes of steel to serve production

VinMetal plans to import one million tonnes of steel to serve production

VinMetal plans to import nearly one million tonnes of scrap steel every year to supply its $3.2 billion steel complex in the central province of Ha Tinh.

VinMetal plans to import one million tonnes of steel to serve production. Photo: Duc Thanh

VinMetal Production and Trading JSC is waiting for the approval of an environmental permit for the VinMetal Ha Tinh steel plant investment project.

One of the notable points in the proposal is the source of raw materials for steel production. The company plans to import approximately 950,000 tonnes of scrap steel per year. This scrap volume will be transported by sea and stored in the factory's outdoor scrap storage area.

This is also one of the reasons why the project is subject to the environmental permit application procedure as cited in the report.

The raw material is part of a closed steel production chain comprising many stages. The project includes production lines for coke, ore pellets, sintering, iron smelting, steelmaking, continuous casting, and steel rolling.

In the final product stage, the plant is expected to produce three million tonnes of hot-rolled coil steel per year, 1.4 million tonnes of steel bars, and 600,000 tonnes of steel wire. The total product output of the project is estimated at five million tonnes per year.

In addition to steel products, the project also generates several by-products such as 1.7 million tonnes of finely ground granulated blast-furnace slag and approximately 800,000 tonnes of secondary-processed slag cement per year.

Previously, in February, the investor, namely VinMetal Production and Trading JSC, a subsidiary of Vingroup, was granted the investment registration certificate for the VinMetal Ha Tinh Steel plant project.

The project has a total investment capital of nearly VND80 trillion ($3.2 billion), of which the investor's capital contribution is approximately $479.6 million, equivalent to 15 per cent of the total capital. The remaining $2.71 billion, equivalent to 85 per cent, will be mobilised from credit institutions and other legal capital sources.

According to the schedule outlined in the application, the project is expected to commence construction in the fourth quarter of this year and begin commercial operation in the first quarter of 2031, with a total construction time of approximately 48 months.

In May, VinMetal signed an MoU for a strategic partnership with Primetals Technologies. The agreement focuses on the creation of a large integrated steel complex in Ha Tinh. This facility will produce both long and flat steel products through two production lines.

As part of the agreement, Primetals Technologies will serve as technology integrator and will also execute a pre-engineering package for the complete scope of equipment, enabling early preparations for civil works. This partnership allows VinMetal to lower technical risks and complete the project faster by using standardised technological solutions from the start.

VIR