Hoa Phat Dung Quat Rail and Special Steel JSC has partnered with SMS group to build a state-of-the-art rail and section mill with an annual capacity of 700,000 tons. The facility will be located in the Dung Quat Economic Zone, Quang Ngai Province.
SMS group will supply and engineer key equipment, including a next-generation Breakdown Mill with hydraulic bottom roll adjustment, Universal Reversing Tandem Mill group, CCS Stands, in-line profile measuring systems (PROgauge), straightening machines, and rail finishing units. Most equipment will be manufactured and tested in SMS group’s German workshops.
The CCS Stands, featuring hydraulic under-load roll adjustment and automated quick-change systems, are a global benchmark in section rolling. The integrated laser-based PROgauge system enables precise, real-time profile and surface quality checks. Straightening will be handled by CRS-type machines and advanced V-straighteners to ensure low residual stress in finished rails.
The plant will include advanced Level 1 and Level 2 automation, along with SMS group’s Quality Execution System (QES), to ensure consistent, traceable product quality while optimizing productivity, reducing costs, and lowering energy consumption.
Once operational, expected within 20 months, the facility will strengthen Hoa Phat’s position in Vietnam’s steel industry by supplying high-speed rail and infrastructure projects across the region with high-quality rails and medium sections.