Hoa Phat's production capacity and development orientation to 2025
BlogDate: 19-12-2023 by: Ngoc Cam
In Vietnam, Hoa Phat is considered one of the largest enterprises in the steel industry. With the strength of steel production capacity and export to countries around the world, Hoa Phat aims at being in the top 50 largest steel-producing companies in the world with a turnover of over 100,000 billion VND/year, creating value for the Vietnamese economy in general.
1. Hoa Phat Group Overview
Established in 1992, Hoa Phat belongs to the first group of private companies established after the Vietnam Enterprise Law was promulgated. Currently, the group has a production scale with dozens of factories and a product distribution network stretching across Vietnam.
1.1. Company History
- In 1992: Established Hoa Phat Equipment & Parts Co., Ltd. - The first company bearing the brand name Hoa Phat
- 1995: Established Hoa Phat Furniture Joint Stock Company
- 1996: Established Hoa Phat Steel Pipe Co., Ltd
- 2000: Established Hoa Phat Steel Joint Stock Company
- 7/2001: Established Hoa Phat Refrigeration Co., Ltd
- 9/2001: Established Hoa Phat Urban Development and Construction Joint Stock Company.
- 2004: Established Hoa Phat Trading Co., Ltd
- 1/2007: Restructured according to the group model, with the parent company being Hoa Phat Group Joint Stock Company and its member companies.
- 8/2007: Established Hoa Phat Steel Joint Stock Company
- 15/10/2007: Listing stocks with code HPG on Vietnam stock market.
- 6/2009: Hoa Phat Energy Joint Stock Company became a member company
- 12/2009: Hoa Phat Iron and Steel Complex completed investment stage 1
- 6/2010: Golden Gain Vietnam Joint Stock Company became a member company
- 8/2012: Hoa Phat celebrated 20 years of establishment and development, received the Third Class Labor Medal from the President
- 10/2013: Hoa Phat Iron and Steel Complex completed investment stage 2
- 9/2014: Deploying stage 3 of the Iron and Steel Complex with a capacity of 750,000 tons
- 9/3/2015: Hoa Phat officially launched Hoa Phat Trading and Feed Production One Member Company Limited, marking a new development in the Group's history when investing in agriculture.
- 6/7/2015: Hoa Phat Mineral Joint Stock Company officially changed its name to Hoa Phat Livestock Development Joint Stock Company.
- 7/2015: Established Hoa Phat Dong Nai Animal Feed One Member Company Limited - - 1/2016: Established Hoa Phat Quang Binh Livestock Co., Ltd.
- 2/2016: Established Hoa Phat Agriculture Development Joint Stock Company, the 18th member company of the Group
- 4/2016: Established Hoa Phat Steel Co., Ltd., started to implement the project of color coated steel sheet, galvanized steel sheet, cold galvanized steel sheet of all kinds.
- 2/2017: Established Hoa Phat Dung Quat Steel Company
- 8/2017: Hoa Phat Group officially celebrates 25 years of construction and development
- 2018: Supplying high quality color coated steel sheet to the market and for the first time, the consumption volume of Construction Steel reached a record of 250,000 tons.
- In 2019: Run phase 1, In 2020 run phase 2 of Dung Quat project
- 12/2020: Starting to supply commercial HRC hot rolled coil products to the market. The product helps to optimize Hoa Phat steel ecosystem.
- 12/2020: Restructured the operating model with 4 corporations under Hoa Phat Group including: Iron and Steel Corporation, Steel Products Corporation, Real Estate Corporation, Corporation Agriculture.
- 9/2021: The Group decided to establish Hoa Phat Household Appliances Corporation with the following fields of activity: Investment, production and sales of electrical appliances - household appliances.
1.2. List of Hoa Phat steel products
By 2022, Hoa Phat's steel product portfolio includes:
- Construction steel: Billet, coil, bar, hot rolled coil, special steel and related products.
- Steel pipes: Black steel pipes, hot-dip galvanized steel pipes, galvanized steel pipes, large steel pipes, galvanized steel coils and other industrial steels.
- Steel sheet: Rust-cleaned and oil-coated corrugated iron, cold rolled corrugated iron, galvanized corrugated iron, color coated galvanized corrugated iron, galvanized aluminum coil and color coated zinc aluminum.
- Metal fabrication: Drawn steel, flanged prestressed steel, high quality coke for metallurgy and thermal power, manufacturing equipment.
2. Hoa Phat's production capacity
2020-2021 is a period of global economic crisis when the world faces difficulties and impacts from the Covid-19 pandemic. However, Hoa Phat has always recorded growth in output and market share of construction steel. In 2020, the production capacity of finished construction steel reached more than 3.4 million tons, up 22.5% over the same period last year, accounting for 33% of Vietnam's market share.
Through 2021, Hoa Phat has established and continuously maintained its No. 1 position in the steel pipe market for 20 years with a production output of 920 thousand tons, accounting for 30-32% of the domestic market share.
Hoa Phat color coated corrugated iron products were first introduced to the market in April 2018 and were quickly received and supported by the domestic and international markets because of their optimal quality and price. Up to now, Hoa Phat Group has been distributed in many countries and territories around the world. Sales volume in 2019 increased by 5 times compared to 2018. In 2020, Hoa Phat's color coated steel sheet continues to grow by nearly 150% over the same period. In September 2021, Ton Hoa Phat recorded consumption of 273,000 tons, 2.6 times higher than the same period in the year before.
In 2017, Hoa Phat Group completed and put into operation Stage 1 - Hoa Phat Hung Yen mechanical manufacturing and Steel wire drawing factory with total area for rent up to 600ha, capacity to about 40,000 tons/year, contributing to completely replacing imported steel wire. In 2018, Hoa Phat invested in Stage 2 with equivalent capacity.
Also in 2018, Hoa Phat continued to build a flange manufacturing factory for pre-stressed concrete piles located in Binh Duong. At the same time, another project to be promoted is Vietnam's first high-quality prestressed steel mill in Dung Quat Economic Zone, Quang Ngai with three main product lines: prestressed steel bars force (PC bar), prestressed steel cable (PC Strand) and prestressed steel wire (PC Wire). These products have many applications in large-scale infrastructure construction such as towers, viaducts, oversea bridges, skyscrapers, cable cars. Although newly launched in the market, the sale volume of wire-drawn, wire-plated and pre-stressed steel bars (PC Bar) in 2020 was very positive, reaching about 100,000 tons, doubling compared to 2019.
Hoa Phat Group continued to expand its business strategy when investing in hot rolled coil (HRC) with a capacity of 3 million tons/year. Right at that moment, the number of domestic and international orders in the first quarter of 2021 exceeded 300% of Hoa Phat's production capacity. Hoa Phat Dung Quat Iron and Steel Production Complex in 2020 reached nearly 700,000 tons. The Group set a target of HRC output in 2021 of 2.7 million tons to meet the needs of steel pipe, galvanized steel and other mechanical engineering industries.
Currently, Hoa Phat has developed two advanced iron and steel production complexes, Hai Duong and Dung Quat, and a steel-rolling complex in Hung Yen. Hoa Phat's total crude steel production outputs by 2020 reached 5.8 million, double that of the same period in 2019. From a steel billet mill using 300,000 tons/year electric furnace technology, Hoa Phat has improved its capacity production of crude steel up to 8 million tons/year in early 2021.
3. Hoa Phat's export capacity
Hoa Phat made its first mark in history when exporting construction steel and billet reached nearly 2.3 million tons. In which, color coated corrugated iron products exported to the US market achieved the largest proportion of Hoa Phat's exports in 2021 with 1,622,118 tons of steel, equivalent to 45.78% of revenue; steel billet exports to China reached 786.317 tons of steel, equivalent to 22.19% of revenue; In addition, they have exported many rebar products, hot rolled coils,... to many other fastidious markets such as the United States, Canada, the EU, ASEAN,...
Since 2020, thanks to the operation of Hoa Phat Dung Quat Iron and Steel Complex, the Group has made many breakthroughs and developments. Hoa Phat's steel production capacity from 300,000 tons/year in 2001 increased 28 times in 2021 with 8.5 million tons in the first quarter of 2021. The volume of exported finished steel products exceeds 1 million tons in 2021, 2 times higher than 2020. Hoa Phat's construction steel market share remains firmly at the top with 32.6%, helping Hoa Phat rise to become a leading manufacturing enterprise in Vietnam and Southeast Asia, equivalent to the top 50 largest crude steel producers globally (according to World Steel 2021).
4. Hoa Phat's development orientation to 2025
Hoa Phat Dung Quat Iron and Steel Complex Stage 2 started construction in May 2022, is expected to be completed and put into operation in 2024 with a total capacity of up to 5.6 million tons/year, total investment 85,000 billion VND. Basically, the project is over 70% completed with a system of mills:
Iron and steel smelting plants, sintering plant and ore production factory, iron ore processing and lime production plants;
Repair of electromechanical plants
Steel milling factory
The project uses 450m3 blast furnace, cast iron, steel blast furnace, hot wind furnace, coal gas tank with a capacity of 50,000m3. Hoa Phat Dung Quat 2 is a synchronous and closed production line where the output materials of this factory are the input materials of other factories. This gives a proactive advantage to input materials, ensures quality control and synchronization, and optimizes the cost of finished products to compete in the market.
Hoa Phat is affirming its No. 1 position in Vietnam's steel industry through its impressive production capacity and global distribution and export strategy. If you have any demand for importing high quality Vietnamese steel, please contact MRS Steel via Email vanloc@mrssteel.com.vn.
