Hoa Phat partners with Italian group to produce stainless steel

On January 30^th 2018, Hoa Phat Dung Quat Steel JSC of Hoa Phat Group and Italy’s Danieli – one of the world’s largest suppliers of metallurgical equipment started a project on stainless steel (inox) production in Viet Nam.

According to Deputy Director of the Hoa Phat Dung Quat Steel JSC Mrs. Vuong Ngoc Linh, the project is designed with a capacity of 600,000 tonnes per year, which could be increased to one million tonnes per annum, and will be the first modern stainless steel manufacturing plant in Viet Nam. 

The plant will be located at the Hoa Phat Dung Quat iron and steel production complex area in Dung Quat Economic Zone in central Quang Ngai province to make use of the available infrastructure. 

Hoa Phat Group and Danieli start the the project on stainless steel (inox) production

The project, which will be completed by 2020, aims to increase the value chain of steel products, and reduce imports and dependence on foreign markets.
Preliminary statistics showed that Chinese stainless steel sector has scale of US$39 billion and was expected to double by 2025. Viet Nam imported about 560,000 tonnes of stainless steel products in 2017, up 10 per cent against the previous year, in service of industrial production, mechanics, and consumer products. The inox demand has been on the rise while Viet Nam only imports material for production but having no production plant for the special and valuable material.

Hoa Phat therefore decided to research for the product to take advantages of available infrastructure while reducing pressure on depending on imported material. According to Denieli Group, more than 80 per cent of stainless steel factories in the world use electric arc furnace (EAF) technology thank to its simple production process, thus saving electricity and more effective than basic oxygen furnace (BOF). Therefore, Denieli believed that Hoa Phat should choose EAF technology.

Hoa Phat and Denieli agreed to combine the two technologies to ensure energy saving and environmental friendliness.

After evaluating the feasibility, the stainless steel factory will be invested in parallel with the second phase of Hoa Phat Dung Quat Integrated Steel Complex and completed in 2020.

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