Messer to supply industrial gases for Hoa Phat Dung Quat Integrated Steel Complex

Hoa Phat Group and Germany Messer Group on April 17^th in Ha Noi signed a contract to supply industrial gases for the Hoa Phat Dung Quat Integrated Steel Complex in the central Quang Ngai Province.

The signing ceremony was attended by leaders of Hoa Phat Group and Messer Group including Tran Dinh Long, chairman of Hoa Phat’s management board, Tran Tuan Duong, vice chairman of the Hoa Phat’s management board, Mai Van Ha, director of Hoa Phat Dung Quat Steel Company; Stefan Messer, chairman of Messer Group, Marc Oliver Wachter, general director of Messer Hai Phong Industrial Gases Company Limited.

Hoa Phat and Messer has co-operated since 2007 for the construction of Hoa Phat Steel Complex in the northern Hai Duong Province.  The contract confirms sustainable co-operation between the two parties

Under the contract with Hoa Phat Steel, Messer will build two plants in the Dung Quat economic zone to supply oxygen (O2), nitrogen (N2) and argon (Ar) to the steelworks by pipeline.

The sites will produce 80,000 Nm3 of O2 of N2 per hour. The plants are expected to start operations in November 2018 with a term of 25 years. Total production capacity amounts to 80,000 standard cubic metres of oxygen and 160,000 standard cubic metres of nitrogen per hour, which corresponds to around five and ten road tanker loads.

Stefan Messer – Chairman of Messer Group said that the gas plant with investment capital of nearly US$100 million at Hoa Phat Dung Quat Integrated Steel Complex will be Messer’s largest scale plant in Vietnam and other Southeast Asian countries. He also committed to carry out the project of gas separation plant on schedule and hoped that the deal would open up opportunities for extensive co-operation between two parties.

The agreement between Hoa Phat and Messer is the second largest contract of Hoa Phat Group. The first one is the contract between Danieli Group and Hoa Phat Group to supply and install equipment for Hoa Phat Dung Quat Integrated Steel Complex.

At the moment, the Phase 1 is being implemented in 21 months with the first phase of long steel and construction steel which is 2 million tonnes of rebar and wire coils, 2 million tonnes of high quality steel. Later stage will be implemented after phase 1, lasting 18 months with key products of flats. It is expected that the entire project will be completed by the end of 2019.

Messer Group is one of the leading industrial gas groups in the world with annual turnover of over 2 billion EUR. Currently, the group has three companies in Vietnam.

Messer has been co-operating with the Hoa Phat Group since 2007. All production plants were constructed on Hoa Phat Steel's site in the northern province of Hai Duong.

Thu Hang