Hoa Phat speeds up rail and special steel plant project

By the end of the first quarter of 2026, the group had completed around 35 per cent of the project, with contractors working to ensure that installation of equipment can begin in June.

Perspective view of Hoa Phat Dung Quat’s rail and special steel manufacturing plant

The plant, located within the Dung Quat Economic Zone, is designed with an annual capacity of 700,000 tonnes. It will utilise advanced rolling technology supplied by SMS group, including a high-precision four-high rolling mill capable of meeting stringent international standards.

From the third quarter of 2026, experts from SMS group are expected to arrive in Vietnam to oversee installation, calibration and trial operations.

Alongside construction, Hoa Phat is working with SMS group and Hanoi University of Science and Technology to train engineers and technical staff, ensuring readiness for technology transfer and stable plant operations once completed.

Đinh Cong Vien, Director of Hoa Phat Dung Quat Rail and Special Steel JSC, said multiple construction items are being carried out simultaneously to stay on schedule.

“Our goal is to produce the first high-speed railway rail products by the first quarter of 2027, in time to serve key national railway projects,” he said.

The project, which broke ground in December 2025, has a total investment of over VNĐ10 trillion (US$400 million). Its product range will include high-speed railway rails, urban railway tracks, crane rails and various structural steel products such as U, I, H and V sections, along with other specialised steel.

Using iron ore with low impurities, the plant is expected to produce steel rails up to 100 metres in length, with high straightness, flatness and durability. Advanced laser measurement systems and ultrasonic testing will be applied to ensure strict quality control before products are released to the market.

Products will comply with leading international standards, including EN 13674 (Europe), JIS E1120 (Japan) and TB/T2344 (China), meeting demanding requirements in transport infrastructure and heavy industry.

With construction accelerating and preparations for technology and workforce underway, the project is expected to come online soon, helping supply high-quality rail steel for the domestic market and major infrastructure projects.

Hoa Phat, one of Vietnam’s leading industrial manufacturers, continues to position steel as its core business. By the end of 2026, the group’s crude steel capacity is expected to reach 16 million tonnes per year, the largest in Southeast Asia and placing it among the world’s top 30 steelmakers.