AsemconnectVietnam - Mr. Tran Dinh Long, Chairman of the Board of Directors of Hoa Phat Group (HPG - HOSE) said that after the Dung Quat 2 project in Quang Nam, the Group is researching to deploy the Dung Quat 3 project in Phu Yen with total capital is estimated over USD5 billion.

Hoa Phat Group said that in the first quarter of 2024, profit reached VND2,869 billion, completing 28.7% of the year plan. In particular, the field of iron and steel production and steel products contributes about 90% of this result.
Regarding production and business activities, in the first quarter of 2024, the Group produced 2.1 million tons of crude steel, an increase of 70% compared to the same period in 2023. Sales of construction steel, steel billet and HRC reached 1 85 million tons, an increase of 34% compared to the first quarter of 2023. Hoa Phat's construction steel and high quality steel reached an output of 956,000 tons, an increase of 10%. Hot rolled steel coil reached 805,000 tons, up 67% compared to the first 3 months of last year.
“The first quarter of 2024 can be said to be relatively good, the Group did two things well. The first is to increase sales output over the same period. The second is to push out high-priced fuel inventories. This quarter may be a bit of a loss but it will be good for the following quarters. The Group has never pulled inventory down as low as it is now," Hoa Phat Chairman of the Board of Directors Tran Dinh Long said at the Annual General Meeting of Shareholders taking place on the morning of April 11, 2024. During the period, Hoa Phat made a relatively large exchange rate provision of VND200 billion.
Regarding the Dung Quat 2 project, HPG leaders said that the project has a total investment capital of VND85,000 billion, design capacity of 5.6 million tons of high quality hot rolled coil (HRC) steel/year. The project will be implemented from the first quarter of 2022, and by the beginning of 2024, it has reached over 50% of all main items. It is expected that when Dung Quat 2 is completed in 2025, Hoa Phat's total HRC production capacity will increase to 8.6 million tons/year.
Hoa Phat is researching silicon corrugated iron to produce steel used in electric motors and made from scratch. This is a product that no other company in Vietnam can make. In addition, Hoa Phat will make high-strength rail steel. Hoa Phat has taken the first steps and is ready to bid on the North-South high-speed railway project.
Hoa Phat Group determined that the product structure of the Dung Quat 2 project and future projects will focus strongly on producing high-quality hot-rolled steel (HRC) to serve the needs of the mechanical manufacturing industry. The Group also focuses on in-depth investment to produce steel grades that require more difficult techniques, used as raw materials for the production of screws, car tires, cables, prestressed steel, silicon steel, and steel for making high-speed train tracks…
According to the assessment of Hoa Phat's Board of Directors, this year's steel market has not prospered because it follows real estate and public investment, especially the huge overcapacity situation in the world market. But with Hoa Phat's tradition and business experience, 2024 will be better than last year and next year will be even better.
Regarding development strategy, Mr. Long shared that the multi-industry trend is inevitable, but from time to time there will be specific steps. Hoa Phat's strategy at this time is to focus resources on steel because if industrial production is small-scale and the products are outdated, sooner or later it will be crushed. After the Dung Quat 2 project in Quang Nam, Hoa Phat is researching and implementing the Dung Quat 3 project in Phu Yen with an estimated total investment capital of over USD5 billion.
In the real estate sector, the Group has a policy of not expanding, focusing on developing industrial park projects. Housing projects in urban areas can only be done when there is complete legality.
N.Nga
Source: VITIC/Tinnhanhchungkhoan