Hoa Phat builds 14 trillion VND steel rail factory in Dung Quat Economic Zone

On April 17, Hoa Phat Group held the 2025 Annual General Meeting of Shareholders. The General Meeting of Shareholders approved all meeting contents such as the 2025 business plan, 2024 dividend payment plan, expected 2025 dividend rate, etc.

Leading high-tech steel

Hoa Phat always focuses on investing in production and supplying steel products with high quality and technical content, closely following market developments and optimizing costs at all stages.

In 2024, Hoa Phat Group will achieve more than 140,560 billion VND in revenue and a net profit of over 12 trillion VND, up 16% and 77% respectively compared to 2023. The steel sector (including iron and steel and steel products) continues to play a leading role and affirms itself as the core business of the Group. Revenue and profit after tax of this sector account for 93% and 86% of the entire Group, respectively. Profit from the agricultural sector will grow 4.6 times compared to 2023.

Export activities contribute significantly to 31% of the Group's total revenue. Hoa Phat's export markets are very diverse with over 40 countries and territories such as Southeast Asia, Japan, Korea, the US, Canada, European countries, etc. Export activities help diversify the consumption market, while contributing to foreign currency earnings and balancing Vietnam's trade balance.

Hoa Phat steel billet products.

With an increasingly large scale of operations, Hoa Phat Group actively contributes to the socio-economic development of the whole country. Total state budget contribution in 2024 will reach nearly 13.5 trillion VND, the highest in its 32-year history of operation and an increase of 48% compared to 2023.
The Group is currently focusing on promoting the production of high-quality steel lines to serve the manufacturing and processing industries such as automobiles, shipbuilding, mechanics, oil and gas, railways, household appliances, etc. and the defense industry, helping to be self-sufficient in domestic raw materials, not dependent on imports.

Hoa Phat is focusing all its resources on completing the Hoa Phat Dung Quat 2 Iron and Steel Complex project in 2025, creating a foundation for double-digit growth in the following years. When the Hoa Phat Dung Quat 2 Iron and Steel Complex project is completed, the Group's steel production capacity will reach 15 million tons/year, expected to put Hoa Phat in the Top 30 largest steel enterprises in the world.

Profit after tax in the first quarter of 2025 reached more than 3,300 billion

In the first quarter of 2025, Hoa Phat's revenue reached more than 37.9 trillion VND, an increase of 22% over the same period last year. Profit after tax was more than 3,300 billion VND, equivalent to completing 16% of the 2025 profit plan.

In the first quarter of 2025, Hoa Phat Group produced 2.66 million tons of crude steel, up 25% over the same period. Sales of hot rolled coil, high-quality steel, construction steel and steel billets reached 2.38 million tons, up 29% over the first quarter of 2024.

Hoa Phat Dung Quat Steel Production Complex.

Of which, hot-rolled coil (HRC) reached 993 thousand tons, up 23% compared to the first quarter of 2024. In particular, hot-rolled coil sales in the first quarter of 2025 in the domestic market reached 874 thousand tons, up 9% over the same period last year. Construction steel and high-quality steel products reached 1.19 million tons, up 25%. Hoa Phat also supplied 198 thousand tons of steel billets to the domestic and export markets, more than double the same period.

Regarding downstream products, Hoa Phat Group supplied 89 thousand tons of galvanized steel to the domestic and foreign markets, down 9% compared to the first quarter of 2024. Steel pipes recorded 185 thousand tons, up 42% compared to the first quarter of 2024. Prestressed steel of all kinds reached 38.5 thousand tons, up 7%.

Chairman of the Board of Directors of Hoa Phat Group Tran Dinh Long also informed that Phase 1 of the Hoa Phat Dung Quat 2 Iron and Steel Complex project has been put into trial operation. Phase 2 is being implemented on schedule, and the entire project is expected to be completed in the fourth quarter of this year. With the additional output from Dung Quat 2, the Group strives to achieve double-digit growth for this year and the following years.

Ready to start construction of Steel Rail and Special Steel Factory

Chairman of the Board of Directors of Hoa Phat Group Tran Dinh Long commented that in 2025, the world situation will have many unpredictable factors, especially geopolitical fluctuations of the world's superpowers, and the increasing protectionist trend. "Hoa Phat's culture is to overcome any difficulty and move forward with any obstacle. We will always move forward, ready to flexibly adapt to domestic and foreign market developments," said Chairman of the Board of Directors of Hoa Phat Tran Dinh Long.

Hoa Phat put into production a modern European HRC steel rolling casting line.

The Group's strategy in the coming time will be to strongly increase the production proportion of high-quality steel such as tire cord and beadwire, cold-formed steel, prestressed steel, non-alloy spring steel, steel for oil pipes, crane cables, steel for precision screws; smooth round steel bars and rolled steel bars for processing and manufacturing industries, etc.

Regarding the production of rail steel, Hoa Phat will set up a factory in Dung Quat Economic Zone with an investment capital of about 14 trillion VND. Chairman of the Board of Directors of Hoa Phat Group Tran Dinh Long is confident that he will successfully produce rail steel products and many high-quality steels, in order to fulfill his commitment to the Prime Minister on the production and supply of all types of steel for the North-South high-speed railway project, urban railway projects in Hanoi, Ho Chi Minh City and many other projects. Currently, the Group has completed negotiations with a partner to supply a bloom casting line for rails. It is expected that in May, a contract will be signed for a rail rolling line and special steels. In 2027, it is expected to have rail products.

PV

Source: https://baoquangngai.vn/kinh-te/202504/hoa-phat-xay-nha-may-san-xuat-ray-thep-14-nghin-ty-tai-kkt-dung-quat-0a34bd6/