Hoa Phat Group has decided to invest VND1 trillion (US$43.9 million) in building a high quality post-tensioning steel factory, Vu Thi Anh Tuyet, deputy director of Hoa Phat Equipment and Accessory Company Limited, said.
The plant is located in Dung Quat Economic Zone in the central province of Quang Ngai and will be the first high-quality steel factory in Viet Nam.
It is built to replace steel imports and add value to its closed production model of the Hoa Phat Dung Quat iron and steel production complex.
The project has a capacity of 160,000 tonnes per year, including three high-end products -- PC bar, PC Strand and PC Wire. These products are used in large-scale infrastructure projects that require high technology, high load capacity and safety, such as towers, viaducts, cross-sea bridges, high buildings and cables. Moreover, these products help optimise space and material costs, shortening the time of construction work.
The post-tensioning plant is located right next to the complex, resulting in significant savings in transportation costs and inventory, as well as meeting the production schedule and delivering the goods quickly. Thus, the advantageous location will lower the cost of products and raise competitiveness compared with imported goods.
The project will make use of opportunities to upgrade the value chain of Hoa Phat’s steel products. With a modern and synchronous production line from Europe, Hoa Phat post-tensioning steel factory has potential to meet the demand of related products, ensuring the highest quality.
According to Tuyet, Viet Nam imports 100 per cent of post-tensioned steel products from China, Thailand, Indonesia, Republic of Korea and Japan, with annual output of over 70,000 tonnes of PC Bar and PC Strand steel to build infrastructure in the country. In the first nine months of 2017, this figure increased to 85,000 tonnes, an increase of 21 per cent over the entire previous year.
Hoa Phat post-tensioning steel factory is expected to meet 100 per cent of the demand for construction of domestic infrastructure projects, supporting the country in actively investing in development, reducing dependence on the external market, restricting the bleeding of foreign currencies and providing the market with products of high quality and stability.
The plant is scheduled to be implemented within 12 months from the beginning of 2018, right after being allocated land, and officially launched in early 2019. — VNS