Autonomy in steel production technology for large projects
According to Hoa Phat's leaders, the high-speed railway project also uses many other types of steel that Hoa Phat is producing. Specifically, according to the quality hierarchy, steel for ball bearings, valve springs, alloy springs, steel for car tire belts... is difficult to make at level 10, while steel for high-speed train rails is only at level 8. Hoa Phat Group's team of technology engineers has mastered the technology to produce the most difficult and highest quality products such as steel wire for cold stamping, arc-welded steel wire, steel for elevator cables, weather-resistant steel plates in 2021, especially steel coils for car tire belts (tirecord steel).
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| Chairman of the Board of Directors of Hoa Phat Group Tran Dinh Long directly went to learn about the reality at the world's leading steel rail manufacturing factories in Europe. |
Steel for tire belts has very high requirements for the purity of liquid steel. Steel belts have a very small diameter of 0.15-1.80mm, like hair, the product needs to have special physical and mechanical properties, extremely high purity, and very low gas impurities. Hoa Phat Dung Quat Steel has been refining this special steel since 2022 at Dung Quat 1 rolling line 3 and supplying it to Hyosung (Korea), Bekeart (Belgium). In addition, Hoa Phat has also been certified to supply raw steel for the production of elevator cables and crane cables for Tokyo Rope Japan.
In addition, Hoa Phat ensures investment in equipment and technology transfer to produce the best and highest quality rail steel as Europe is producing. Hoa Phat also calculates the plan to transport rails up to 120m long to reduce welds on the high-speed rail, allowing the system to operate stably at high speed.
G7 partners providing technological equipment for Hoa Phat such as Danieli, SMS... all hold the world's leading position in the production of rail steel in Europe and Asia.
In October and November 2024, Chairman of the Board of Directors of Hoa Phat Group Tran Dinh Long and a team of technology experts directly visited many of the world's leading steel rail factories in Europe; consulted on the arrangement of technological equipment lines for the factory, the way of operating and organizing production, production technology processes, quality control processes throughout the entire process from preparing clean raw materials produced from iron ore, vacuum refining to refine the highest purity metal and remove harmful gas impurities, online quality control system, UT equipment to check for defects inside steel rails (Ultrasonic testing), laser geometric profile testing equipment (Hiprofile), rail straightening system, rail end tempering system during the production of rails for high-speed railways to ensure quality is always at the highest level.
The Group began negotiating, cooperating, supporting, transferring technology and techniques with partners, suppliers of steel rail production equipment for the world's leading high-speed railways today, and they are all partners who have accompanied Hoa Phat for many years.
Hoa Phat Dung Quat Steel also cooperates with the School of Materials - Hanoi University of Science and Technology to continuously organize intensive training courses on high-quality steel products with 3 main topics, focusing on special steel types and complex production techniques such as: Steel for making car tire belts/belts; electrical engineering steel (Silicon steel); steel for making rails for high-speed trains.
Completed procedures for implementing high-speed steel rail project in Phu Yen
Currently, Hoa Phat is promoting the completion of necessary procedures to clear the land and implement projects in Hoa Tam Industrial Park, in Nam Phu Yen Economic Zone, Phu Yen province. Including the investment project to build Hoa Phat Iron and Steel Complex. The expected product structure of this Complex focuses on high-quality steel lines for mechanical engineering such as rail steel, steel plates, structural steel, shaped steel, and smooth round bars (SBQ). Immediately after having the land, Hoa Phat can be ready to implement the project to produce rail steel for high-speed railways, in terms of technology, human resources and production location.
Previously, Mr. Tran Dinh Long, Chairman of the Board of Directors of Hoa Phat Group, said that Hoa Phat is currently the largest steel producer in Southeast Asia, in the top 50 in the world in steel production with a capacity of 8.5 million tons/year. From 2025, after the Hoa Phat Dung Quat 2 Iron and Steel Complex project is completed, Hoa Phat's crude steel production capacity will be more than 14 million tons/year, including 8.6 million tons of hot rolled coil steel and high-quality steel.
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| As the only Vietnamese steel manufacturer capable of producing high-tech steel, Hoa Phat ensures investment in equipment and technology transfer to produce steel rails. Photo: Hoa Phat |
It is known that in the past 3 years, Hoa Phat has researched the steel rail product line. The production of high-speed railway steel rails is completely within the Group's capabilities. In fact, Hoa Phat Group is surveying and proposing investment plans for a number of large projects in Phu Yen province, including the Iron and Steel Production Complex project. The expected product structure here focuses on high-quality steel lines serving mechanical engineering such as steel plates, structural steel, shaped steel, steel rails.
“We are confident in our commitment to four points: First, we will ensure the supply of 6 million tons of steel of all kinds for the project, especially high-speed rail steel and high-strength prestressed steel. Second, we are committed to quality, all types of steel must meet international quality standards, in accordance with the technical requirements of the bid packages. Third, we will ensure delivery on time according to the project schedule. Fourth, in terms of price, Hoa Phat ensures competitive prices, lower than imported steel prices,” Mr. Long expressed.
According to the calculations of the consulting units, this super project will need about 6 million tons of steel of all kinds, all of which are within the production capacity of Vietnamese enterprises. Chairman of Hoa Phat said that the production of steel rails for high-speed railways is completely within the capacity of Hoa Phat, which will fully meet the requirements of the project with 4 commitments: Ensuring enough 6 million tons of steel of all kinds, especially high-speed rail steel and high-strength prestressed steel; Ensuring international quality for all types of steel, in accordance with the technical requirements of the bidding packages; Ensuring delivery progress according to the requirements of the project; Competitive prices, lower than imported steel prices.
Many economic experts believe that this is also an opportunity for domestic enterprises to participate in large, technically complex infrastructure projects, of which the high-speed railway project on the North-South axis is a typical example. The implementation of the project will create opportunities and motivation for industrial development, especially the mechanical engineering industry, in which the steel industry has a large contribution. If Vietnam is self-sufficient in producing steel for large projects, it will reduce dependence on imports, limit negative impacts on foreign exchange rates, and ensure convenience in maintenance and repair later.
Currently, the Ministry of Industry and Trade has drafted the Vietnam Steel Industry Development Strategy to 2030, with a vision to 2050, to guide state agencies and localities in building mechanisms, policies, and mobilizing resources to manage the development of the industry. The strategy will help enterprises operating in the steel industry develop long-term and short-term plans, as well as product development strategies, and invest in business development in harmony with the development of the industry. At the same time, the strategy clearly outlines the goal of developing steel products in a green and energy-saving direction; increasing the market share of domestically produced steel to gradually replace imported products; orienting production technology and developing raw materials for the steel industry... |
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