Formosa Ha Tinh Steel - billion dollar steel factory in Vietnam
BlogDate: 15-06-2023 by: Nhu Quynh
Recently, Vietnam's steel market has increasingly gained a foothold. To contribute to that success, it is impossible not to mention the efforts of steel manufacturing enterprises. After more than 10 years of operation, Formosa Ha Tinh Steel is one of the major steel producers in Vietnam. This article will help readers get a better overview of Formosa.
1. The overall process of foundation & development
Formosa Ha Tinh Steel (FHS) is Vietnam's largest foreign direct investment. Started construction in 2008, with a total area of more than 3,300 hectares, including a land area of more than 2,025 hectares and a water surface area of more than 1,293 hectares (Son Duong port).
With a total investment of more than 28 billion USD, the project marks the first turning point in the iron and steel industry for Formosa Group. This investment project creates important transport, economic, and energy infrastructure in Vietnam, which will contribute to making the Vung Ang Economic Zone the largest heavy industry center in Southeast Asia.
On May 29, 2017, Formosa Ha Tinh Steel officially lit the No. 1 blast furnace fire, producing the first batches of liquid iron and steel billets to produce finished steel. Following the success of May 18, 2018, and continuing the firing ceremony of blast furnace No. 2, these two blast furnaces will supply the market with 7.5 million tons of steel per year. The project has profoundly impacted Ha Tinh's economic, social, security, and defense life and neighboring provinces.
2. HRC - The main product of Formosa Ha Tinh Steel
Thanks to the stable operation of two blast furnaces, Formosa's finished steel products are guaranteed in terms of output and quality. Currently, it is bringing to market two product lines: hot-rolled coil and wire rod with world-leading technology.
Hot-rolled coil: Together with Hoa Phat, Formosa Ha Tinh Steel is a pioneer in hot-rolled coil production in Vietnam. This is considered an input material for producing galvanized steel products and steel pipes. On December 25, 2015, the first hot-rolled steel coil product was released. On December 25, 2015, the first hot-rolled coil product was launched. Currently, Formosa is also the largest HRC producer in Vietnam.
Steel wire: In addition to hot-rolled steel coil, wire steel is also the main product line of the enterprise. Each steel coil released from the factory must be carefully inspected for quality to meet domestic and international standards. Currently, Formosa Ha Tinh Steel is still a commodity that attracts many buyers because this steel has high quality, good heat resistance, and a number of outstanding advantages and features.
3. Production capacity and technical technologies
The project Formosa Ha Tinh Steel has completed phase 1, including two blast furnaces with a capacity of more than 7.5 million tons of iron and steel per year. Phase 2 is under construction and is expected to increase the total capacity of the iron and steel complex to 22.5 million tons per year. Contributing to meeting domestic steel demand and exporting to international markets.
In 2022, Formosa's steel output will reach about 5.8 million tons, increasing the business' revenue to over 4 billion USD. In terms of product supply, Formosa Ha Tinh Steel combines new equipment with the advanced technology of its partners while constantly improving production technology, optimizing operation management, striving to achieve high quality and low cost, and improving the index between the quality and price of the products provided to avoid falling into the situation of unfair cheap competition.
4. Export advantages of Formosa Ha Tinh Steel
Formosa Ha Tinh Steel has been able to continuously and steadily export steel to the Southeast Asian market. With the investment in a system of modern machinery and equipment, the company's products have been able to export to demanding markets such as Australia, the EU, the USA,...
Taking the main export market as the main export market, currently steel and billet are the main export products of the enterprise. According to the Department of Industry and Trade statistics, Formosa's export turnover was estimated at US$1,070 million in the first five months of the year, up 51.88% over the same period. It is known that since the end of March, steel and billet exports have continued to show many signs of improvement and are expected to have higher growth in the coming months.
We have provided you with detailed information about Formosa Ha Tinh Steel. We hope the article will help you. If you have any questions about information and pricing on Formosa's products, please contact us here.