Vietnam expects independent of imported high-quality steel from 2019

According to the Hoa Phat Group, it has decided to invest VNĐ1 trillion (US$43.9 million) in building a high quality post-tensioning steel factory in the Dung Quat Economic Zone in the central province of Quang Ngai.  
Vu Thi Anh Tuyet, deputy director of the group’s Equipment and Accessory Company Limited, said when putting into operation due in early 2019, products of the factory, which will the first high quality steel factory in Vietnam, will replace import steel and add value to its closed production model of the Hoa Phat Dung Quat iron and steel production complex.

The Hoa Phat factory is located at the Dung Quat Economic Zone in the central province of Quang Ngai.

The project has a capacity of 160,000 tons per year, including three high-end products -- PC bar, PC Strand and PC Wire. These products are used in large-scale infrastructure projects that require high technology, high load capacity and safety, such as towers, viaducts, cross-sea bridges, high buildings and cables. Moreover, these products help optimize space and material costs, shortening the time of construction work.
The post-tensioning factory is located right next to the complex, resulting in significant savings in transportation costs and inventory, as well as meeting the production schedule and delivering the goods quickly. Thus, the advantageous location will lower the cost of products and raise competitiveness compared with imported goods.
The project will make use of opportunities to upgrade the value chain of Hoa Phat's steel products. With a modern and synchronous production line from Europe, Hoa Phat post-tensioning steel factory has potential to meet the demand of related products, ensuring the highest quality.
According to Tuyet, Vietnam has to import 100 per cent of post-tensioned steel products from China, Thailand, Indonesia, Republic of Korea and Japan, with annual output of over 70,000 tons of PC Bar and PC Strand steel to build infrastructure in the country. In the first nine months of 2017, this figure increased to 85,000 tons, an increase of 21 per cent over the entire previous year.
Hoa Phat post-tensioning steel factory is expected to meet 100 per cent of the demand for construction of domestic infrastructure projects, supporting the country in actively investing in development, reducing dependence on the external market, restricting the bleeding of foreign currencies and providing the market with products of high quality and stability.
The factory is scheduled to be implemented within 12 months from the beginning of 2018, right after being allocated land, and officially launched in early 2019.