VOF visit Hoa Phat steel integrated complex

On 03 April 2014, a high level delegation of VOF Fund visited and worked in the Hoa Phat steel integrated complex ( Kinh Mon - Hai Duong ) to learn about the steel manufacturing process and the production of Complex in the recent.

Director Board of Hoa Phat Steel JSC and Hoa Phat Energy JSC has briefed the delegation about scale, integrated production process of Hoa Phat steel complex, business results in the past year, leading delegation to visit factories here.

Delegation visits the blast furnace area

According to Mr. Mai Van Ha - Director of Hoa Phat steel JSC, the entire complex has a total investment of over $ 400 million (including investments capital of thermal and coking coal factory), with scale of 132ha and divided into 2 phases. Phase 1 went into operation in late 2009 with a capacity of 350,000 tonnes and Phase 2 with capacity of 500,000 tons officially launched the first product in 10/2013. Currently, all plants operate nearly 100 % capacity (850,000 tons per year). This is considered as the most efficient and competitive in Vietnam.

Mr. Michael Grenville Gray (blue shirt in the middle) – Chairman, and members of the VOF Management Board to learn workflow at the central control room of the pig iron making plant

Mr. Michael Grenville Gray, Chairman of VOF highly appreciated the efforts of Hoa Phat in lower costs, proactively mining and sourcing of raw materials for producing in the long term. On behalf of delegation, he also made much of questions about advantages of Hoa Phat steel compared to other competitors in Vietnam, how blast furnace technology has advantages compared to electric furnace, coke consumption, power for operation and competitiveness of Hoa Phat steel to the other producers in the market, ...

Visiting Hoa Phat thermal electricity and coking coal production plant

That was the often question to those visit this complex for the first time. Hoa Phat has great advantages from the integrated production process from iron ore to finished steel, proactive input materials such as iron ore, coking coal and nearly half of power for operation. Besides, the company boosts productive governance, maximum saves cost at all production stages ... Thus, Hoa Phat steel cost price is very competitive, lower than other competitors around 5-10 %.

Reportedly, VOF is one of the top 10 largest institutional shareholders of Hoa Phat Group with 5.71 % of HPG shares (as at 25/02/2014). After visiting, the VOF management board’s members had a much better understanding of the strategic manufacturing segment and believed that HPG will grow stronger in the future.

Nghi Trần