Equipment deal for Hoa Phat Dung Quat

Hoa Phat Dung Quat Steel Joint Stock Company and a joint venture of Germany’s SMS Group and China’s WISDRI Company on June 28^th signed a contract to provide steelmaking equipment for the Hoa Phat Dung Quat Integrated Steel Complex in the central province of Quang Ngai.

The signing ceremony was attended by Mr. Tran Tuan Duong – Hoa Phat’s general director, Mr. Mai Van Ha – director of Hoa Phat Dung Quat Steel Joint Stock Company, Mr. Guido Kleinschmidt - member of management board of German SMS Group, Mr. Mare A. Hoffmann – SMS’s general director in India and Mr. Zang Zhonghai – chairman of Wisdri Company.

Leaders of Hoa Phat Dung Quat Steel Joint Stock Company and partners signed the contract

Under the agreement, suppliers of the joint venture will be responsible for providing an equipment package worth over VND3 trillion (US$133.4 billion) for the steelmaking plant to meet the capacity of four million tonnes per year. Accordingly, SMS Group will design and provide the main equipment such as blast furnace, oxygen blast system, dust filter system and self-automation system, while WISDRI Company will supply supporting equipment and installation systems for pilot operation under the technical supervision of German specialists.

Speaking at the signing ceremony, Mr. Tran Tuan Duong, Hoa Phat Group’s general director said he expected that with SMS and WISDRI’s huge financial potential and experience in the steel sector, the Hoa Phat Dung Quat Integrated Steel Complex would become one of the model projects in the Southeast Asian region.

With the close co-operation, Hoa Phat Group and its partners are confident that the project would be successful

The steelmaking plant is expected to become operational by the end of 2018 to integrate with other categories in the complex’s chain.

Earlier, Hoa Phat signed contracts with many partners from German and Italy to provide main equipment for steel rolling mill, industrial gas for steelmaking. In terms of basic construction items, Coteccons Group is the main construction unit for Hoa Phat Dung Quat Integrated Steel Complex .

SMS Metallurgical Group is one of the largest and best quality steelmaking equipment suppliers in Europe and the world, supplying metallurgical equipment to a large number of steel mills in Germany, the US, Brazil, Iceland, the United Arab Emirates, India, Malaysia, etc. Wisdri is China's largest state-owned company in the field of supplying metallurgical equipment.

Hoa Phat Dung Quat Integrated Steel Complex has a capacity of 4 million tonnes per year. At present, Hoa Phat's first phase is being deployed in 21 months from February with a capacity of 2 million tonnes per year of long steel and high quality steel. The second phase 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.

Regarding the project, Hoa Phat Dung Quat Steel Joint Stock Company is promoting co-operation with universities in Quang Ngai Province and neighbouring localities to recruit thousands of workers, training human resources for to ensure that synchronous and effective operation of the chain once it come into operation.

                                                                                                           Nghi Tran