Contract signed for rolling mills of Hoa Phat Dung Quat Integrated Steel Complex

Hoa Phat Dung Quat Steel Joint Stock Company and Italian Danieli Group on April 5^th 2017 signed a contract to install first equipment for the Hoa Phat Dung Quat Integrate Steel Complex in the central Quang Ngai Province.

Under the contract, Danieli – the world’s leading metal plant supplier would be responsible for consultancy, production and instalment of equipment for the rolling mills of high quality bar and wire rod in the first phase of the Hoa Phat Dung Quat Integrated Steel Complex with total capacity of 2 million tonnes a year.

Danieli ensured that the first rolling production line of the project would be completed for pilot operation in May 2018. The second rolling mill is expected to complete 6 months later.

The signing ceremony of the first equipment for the Hoa Phat Dung Quat Integrated Steel Complex with participation of senior leaders from Hoa Phat Group and Danieli Group

The Hoa Phat Dung Quat Integrated Steel Complex is divided into two phases with total investment capital of VND52 trillion with designed capacity of 4 million tonnes a year. The main products include construction steel, high quality rolled steel and hot rolled steel. The complex will include deep seaport systems allowing ships over 100,000 tonnes to berth and easily transport their inputs and outputs to domestic and foreign markets.

The phase 1 will be implemented in 24 months from February 20, 2017, with a capacity of 2 million tonnes per year of long construction steel and high quality steel coils. The phase 2 of the project will produce 2 million tonnes per year of hot rolled flat steel for mechanical manufacturing, deployed as early as August 2017. It is expected that the entire project will be completed by the end of 2019.

With the strategy of boosting its operation to the central and southern markets, Hoa Phat will prioritize the steel rolling plant in the whole project to provide more high quality steel bars and coils for the market from the beginning of next year.

Hòa Phát and Danieli has co-operated for 16 years. Hoa Phat has been using many equipment and technologies of Danieli Group for its steel pipe and coated steel projects, especially rolled steel production lines. Particularly for the colour coated steel project in Hung Yen Province, Danieli supplied up to 70 per cent of the factory equipment line for Hoa Phat Group.

                                                                                              Nghi Tran