The Hoa Phat Dung Quat Steel JSC has announced that it will apply SAP S/4HANA, a next-generation enterprise resource planning (ERP) software, for its iron and steel production complex.
The project will be carried out in the next ten months. Once the project is completed, the company will have an administration system that meets international standards and helps analyse business data in real-time. Company leaders will be able to quickly make decisions so as to improve the company’s competitiveness.
The Hoa Phat Dung Quat Steel JSC is the first in the Hoa Phat Group, one of the three largest steel producers in Viet Nam, to apply SAP S/4HANA.
The Hoa Phat Dung Quat iron and steel production complex project is on schedule, with the first line expected to be operational in the third quarter of this year, meeting demands of the central and southern regions.
RoK firms seek partnerships
A delegation of investors from the Republic of Korea (RoK) has met with the Hoa Phat Group last week to seek partnership opportunities.
The delegation, including Kunam Kim, Global Securities Director of KB Securities and Le Thi Quyen, deputy general director of KB Security Viet Nam, visited two steel plants of Hoa Phat in the northern province of Hung Yen.
The RoK firms showed interest in the steel production process and technology of Hoa Phat as well as the group’s growth prospects as its Dung Quat project nears completion.
Pham Thi Kim Oanh, director for finance at Hoa Phat, said that the group has advantages in its river port system at the Hai Duong steel integrated complex. The firm is developing a similar system for the Dung Quat complex, which is expect to handle ships with capacities of up to 150,000 tonnes, she said.
The port has helped Hoa Phat reduce costs and improve convenience in import-export activities, which pushed the firm to rank among the top 50 biggest steel producers in the world, added Oanh.
She also highlighted that Hoa Phat is using Italian technology, which is friendly to the environment.
As the Dung Quat steel complex becomes operational, Hoa Phat’s competitiveness is expected to increase significantly, she stressed, adding that the group has focused on intensive processing and promoting added value of its products.
Currently, two major products of Hoa Phat are construction steel and steel pipes.
By the end of the first quarter of 2018, Hoa Phat Group reported revenue of VND13 trillion (US$572 million), and post-tax profit of VND2.2 trillion, up 25 per cent and 14 per cent year-on-year, respectively. — VNS