Hoa Phat Group has held a groundbreaking ceremony for its Dung Quat Rail and Special Steel Production Plant, marking a key step in the group’s strategy to expand into high-tech steel products. The plant is expected to begin producing high-speed rail rails and special structural steel by 2027, supplying major railway and infrastructure projects.
The project has a designed capacity of 700,000 tons per year, with total investment exceeding VND 10 trillion, and is being built on nearly 15 hectares in the Eastern Industrial Park of the Dung Quat Economic Zone. The facility will be equipped with advanced European technology supplied by SMS Group and Primetals Technologies, including a high-precision four-axis rolling mill system designed to meet international high-speed rail standards.
The plant will produce high-speed rails, urban rail steel, crane rails, and a range of special steel profiles such as U-, I-, H-, and V-sections. Hoa Phat said it expects to launch its first high-speed rail product in 2027, becoming the first producer of this product in Southeast Asia. The rails will be manufactured from low-impurity iron ore, enabling lengths of up to 100 meters, high dimensional accuracy, and superior rigidity, with quality ensured through laser, ultrasonic, and non-destructive testing systems.
Hoa Phat signed a contract with SMS Group in May 2025 for the supply and installation of the rail and special steel production lines. Civil works have begun following completion of land clearance and permitting, with equipment installation scheduled for mid-2026. The company aims to bring the first products to market in 2027, one year ahead of the original plan.
Hoa Phat is Vietnam’s leading industrial manufacturing group, with steel as its core business. By the end of 2026, its crude steel capacity is expected to reach 16 mln tons per year, supporting its ambition to expand production of high-quality and special steels for rail, automotive, energy, shipbuilding, and heavy industry applications.
