Hoa Phat, a Vietnamese steelmaker, will start building its cargo container factory in June at expanded Phu My II Industrial Park, in the southern province of Ba Ria-Tung Tau.
| The first container factory in Ba Ria-Vung Tau will be launched in June. Photo: Hoa Phat |
The factory is expected to meet the increasing demand of the logistic industry in Vietnam and other markets, which are grappling with the shortage of containers. Due to Covid-19, the rotation of empty containers has been delayed, while the sudden increase in the demand for exporting goods to Europe and the US have led to the serious scarcity of containers.
To operate the factory, the Vietnamese group established a subsidiary, Hoa Phat Container Manufacturing JSC with a charter capital of VND3 trillion (US$130 million). It received the business registration by the Department of Planning and Investment of Ba Ria-Vung Tau on April 12.
Vu Duc Sinh, Director of the Hoa Phat Container Manufacturing JSC said: “We chose Ba Ria - Vung Tau to set up our first factory because it is located in the economic engine area of the Southeast region, close to major seaports such as Cat Lai, Cai Mep-Thi Vai, besides others advantages which could ensure the success of the project.”
Its cargo container factory project will put out 500,000 TEU per year, mainly popular container products, with a length of 20-40 feet. Its first phase capacity would be 180,000-200,000 TEU a year.
It is expected that the first shipping containers under the Hoa Phat brand name will be delivered at the beginning of the second quarter of 2022.
Raw materials for the production of shipping container which are hot rolled coil (HRC) steel, special grade SPA-H, natural resistance, weather resistance will be made at Hoa Phat Dung Quat Steel Integrated Complex.
With its advantages of large-scale production and being self-supplier of material resources as well as manufacturing expertise, the Hoa Phat cargo containers with high quality and reasonable prices are expected to be competitive with Chinese products, according to the group.
