Vietnam’s Hoa Phat Steel Group has successfully commissioned its No.1 300-tonne converter at the Dung Quat Steel Complex Phase Two Expansion. This marks a significant step forward in the ongoing development of one of Vietnam’s leading steel production facilities.
Massive Expansion Underway
The second phase of the Dung Quat project includes:
- Two 2,500-cubic-meter blast furnaces
- Two 300-tonne converters
- Supporting infrastructure to enhance production efficiency
Construction of the blast furnaces began in August 2023, with the entire project slated for completion by Q1 2025. Upon completion, the steel complex’s crude steel production capacity will double, adding an additional 5.6 million tonnes per year. The two new blast furnaces alone will contribute 2.5-2.8 million tonnes annually to hot metal production.
Role in Regional Steel Market
The Dung Quat Steel Complex is Vietnam’s second-largest hot-rolled coil (HRC) producer, following Formosa Ha Tinh. Hoa Phat plays a vital role in regional price setting and has positioned itself as a key supplier in Southeast Asia.
However, the competition is heating up as regional players like Eastern Steel and Megasteel in Malaysia and Krakatau in Indonesia aim to expand their presence in the HRC market. This increased competition could challenge Hoa Phat’s dominance, but it also highlights the importance of continued innovation and capacity upgrades.
