Hoa Phat Group posts record profit

Friday, Feb 03, 2017 15:04

A corner of the Hoa Phat Group's store. The group posted record turnover of some VND34 trillion and after-tax profit of VND6.6 trillion last year. — Photo vietnamfinance.vn

Steelmaker Hoa Phat Group posted the total turnover of some VND34 trillion (US$1.5 billion) and after-tax profit of VND6.6 trillion last year.

These figures presented a year-on-year increase of 34 per cent and 89 per cent in terms of turnover and profit, respectively. Last year, the company saw its highest turnover and profit since its establishment.

The group for the first time took the leading position in construction steel consumption in the country, with the total output of 1.8 million tonnes. It sold nearly 500,000 tonnes of steel pipes, accounting for 26 per cent of the country’s market share. Steel pipe consumption of the group also posted a record last year.

Its other products, such as interior and spare parts, also continued to maintain their market share by providing new products with high creativity that were suitable for consumer demands.

In the real estate sector, Hoa Phat has started construction of two large projects -- the 200ha Yen My Industrial Park (IP) and the 260ha Bac Pho Noi Urban Area -- to meet the huge demand for housing at IPs and the capital’s neighbouring provinces. It also manages the Pho Noi A and Hoa Mac IPs.

The group is preparing to complete its second animal feed factory in Long Khánh IP in southern Dong Nai Province with a capacity of 300,000 tonnes per year. This year, it will also build its third factory in northern Phu Tho Province with a similar capacity of 300,000 tonnes per ear to serve the north-western region.

Last week, Deputy Prime Minister Trinh Dinh Dung signed a letter conveying PM Nguyen Xuan Phuc’s approval on the overall direction of the steel project in the Dung Quat Economic Zone (EZ) in central Quang Ngai Province.

Hoa Phat Group proposed last October to resume construction of the Guang Lian Steel Plant in the EZ, which had its investment certificate revoked in September following a long delay in construction. Accordingly, the new project will have total investment capital of $3 billion and an annual capacity of four million tonnes. It will be built in two phases, with a capacity of two million tonnes each.

According to the Dung Quat Economic Zone Management Authority, the steel plant with annual expected revenue of $2 billion will not only contribute about VND4 trillion per year to the province’s budget, but will also create some 8,000 jobs. — VNS

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