Investors appreciated the progress of Dung Quat project

On December 18, 2019, Hoa Phat Group held a meeting with investors in the fourth quarter of 2019 in Dung Quat Economic Zone, Quang Ngai province. With the participation of more than 200 investors, the event showed the great attraction of the project of Hoa Phat Dung Quat Integrated Iron and Steel Complex to both domestic and international investors, representatives of securities companies, investment funds.

This is the first time the Group has organized an investor meeting at this key project. Mr. Nguyen Viet Thang - Member of the BOD cum Deputy General Director of Hoa Phat Group Joint Stock Company and the Board of Directors of Hoa Phat Dung Quat Steel Joint Stock Company gave an overview of the scale, schedule and measures to protect the environment of the project. With the scale of 4 million tons / year, Hoa Phat Dung Quat Integrated Iron and Steel Complex is being put all resources deployed in 2017 on the basis of inheriting Quang Lian steel project (Taiwan) after more than 10 years postponed.

After nearly 3 years, Complex has basically completed phase 1 and is operating the No. 1 and No. 2 blast furnaces and related items in a closed production chain from iron ore to construction steel. For phase 2, over 80% of main equipment items have been completed, expected to put into operation the 2 blast furnaces and hot rolled coil steel mill (HRC) in operation in the second quarter of 2020.

Investors agreed with Mr. Nguyen Viet Thang's view that the above schedule with the nearly 3 billion USD project was a "miracle", because of its large capacity and vast deployment ground, complex items, especially the first deployment of deep-water seaport to allow 200,000 tons of ships to dock, continuous flat steel casting line.

At the meeting, many investors were interested in safeguard measures on long steel, steel output, expected business results of the Group in 2019 and consumption plan in 2020, whether Hoa Phat Dung Quat port can complete as schedule to optimize logistics issues, price, flat steel items are completely new so whether Hoa Phat will be confident to be an early owner of equipment as construction steel or not.

Responding this information, the representative of the Group's leader said that at present, Vietnam Steel Association and its member companies have conducted necessary procedures to submit to the Ministry of Industry and Trade to consider and decide the extension of tariffs on billet and long steel. For the project in Dung Quat, thanks to the deep-water port, each ton of fuel helps Hoa Phat reduce 3-5 USD / ton, this is a great advantage because the raw materials must be imported every year up to millions of tons, on the other hand Hoa Phat also easily exports products to the southern markets and international.

Regarding construction steel sales volume, this year HPG expects to complete the year plan at more than 2.7 million tons and the plan next year may be 3.5-3.6 million tons, mainly boosting the southern market and international. The Group will focus its efforts to complete the second phase of Dung Quat, striving to have HRC steel products in the second quarter of 2020 and by the end of 2020 will own the entire equipment line.

Mr. Hai, an investor who has been with HPG for many years, raised the question of how to recruit and train personnel to operate effectively to ensure effective operation of this strategic machine of the Group? Group leaders shared, over 80% of management staff and key technical staff are experienced workers and engineers transferred from the Complex in Hai Duong. After recruiting, all personnel are trained for only 3 months (learning by doing) at Hai Duong factory, ensuring thorough manipulation and familiarization of equipment chains before returning to work in Dung Quat.

Currently, Hoa Phat Dung Quat Steel Company is directly employing over 7,600 employees, of which Quang Ngai employees are over 6,200 people, accounting for 81.2% of the total number of employees. Staff are arranged free accommodation at the dormitory with full amenities, helping them feel secure dedication. Every day, the company arranged more than 30 buses to shuttle employees from all districts and cities of Quang Ngai and nearby localities.

Within the framework of the program, the delegation of investors witnessed and could not help being surprised at the construction site of Hoa Phat Dung Quat Integrated Iron and Steel Production Complex which is gradually completed and put into operation in part of testing of phase 1. Through this program, the investment community better understand the production technology and environmental protection of the project, and firmly believe in the investment strategies of Hoa Phat Group's Board of Directors and look forward to the future with great promise as well.

Nghi Tran