Manufacturing News 25/04/2024, 17:00

Hoa Phat Accelerates "Super Project" of 85,000 Billion VND Amid Auto Industry Boom

Hoa Phat's 85,000 billion VND project in Quang Nam is expected to finish a few months ahead.

Hoa Phat plans to put its "super project" Dung Quat 2 in Quang Nam into operation this year. This project is expected to enhance the group's capacity in certain industries that require high-quality steel, such as car shells, as Vietnam's vehicle industry is thriving with both domestic and foreign manufacturers.

Accordingly, by the end of March, the Dung Quat 2 project had reached 50% completion. This project has a total investment of up to 85,000 billion VND and a capacity of up to 5.6 million tons of steel per year, of which special steel accounts for about 1 million tons and the rest is hot-rolled coil steel (HRC).

Dung Quat 2 factory is specialized in producing HRC steel. In phase 1, Dung Quat 2 can produce 1.5 million tons of steel per year; therefore, the plant will need about 3 years to reach a maximum capacity of 5.6 million tons per year.

With Dung Quat 2 factory, Hoa Phat's total capacity will exceed 14 million tons of crude steel per year, helping the group maintain its position as the largest steel manufacturer in Southeast Asia and on the list of the 30 largest steel manufacturers in the world by 2025.

HRC steel will help Hoa Phat engage more deeply with the automotive industry

Dung Quat 2 factory will enable Hoa Phat to further engage in industries that require high-quality steel, such as shipbuilding and automobiles. Specifically about the automobile industry, Hoa Phat once said that the group can make steel for bead wire. In 2022, Hoa Phat successfully produced 2 steel grades: SWRH82A and SWRH72A.

Meanwhile, HRC steel will be able to be used for car shells. An article in Nikkei Asia also showed that Hoa Phat aimed to provide finished steel for the automobile industry and improve both output and output quality.

The Dung Quat 2 project is being built amidst significant developments in the Vietnamese automobile industry. Most recently, JAECOO&OMODA of Chery (China) signed with a Vietnamese partner to jointly build an automobile factory in Thai Binh. In addition, the world's largest electric vehicle manufacturer, BYD, was also expected to build a vehicle factory in Phu Tho.

Inside VinFast's automobile factory

In Vietnam, VinFast's automobile factory in Hai Phong has produced a range of vehicles, including electric bicycles (not yet officially delivered), electric motorcycles, gasoline and electric cars, and electric buses. Besides VinFast, cars of many foreign brands, including BMW, Mercedes, and Skoda, are also being assembled in Vietnam.

Furthermore, Toyota's automobile factory in Vinh Phuc utilizes over 1,000 domestically produced products from 13 suppliers. The localization rate of Toyota cars assembled in Vietnam is up to about 40%, specifically the Vios model reaches 43%.

CafeF / Translator: Hoàng Trúc