Hoa Phat targets 2027 start-up for rail steel plant

Hoa Phat Group has completed nearly 70pct of construction of its Dung Quat rail and special steel production plant in Vietnam, with work now focused on completing the factory structure and installing technological equipment.

The plant is designed to produce 700,000 tons of rail and special steel annually, with total investment exceeding VND 10 trillion. The facility is equipped with SMS Group technology, including a flexible four-axis rolling mill system.

Equipment delivery, installation, adjustment and commissioning are expected to enter a peak phase from October 2026, with the first high-speed rail products targeted for the first quarter of 2027.

The plant will produce high-speed rail rails, urban railway rails, crane rails and other special steel products, as well as U-, I-, H- and V-shaped sections. Hoa Phat said its rails will be produced in lengths of up to 100 meters and undergo laser and ultrasonic inspection.

Hoa Phat Group is one of Vietnam’s leading industrial manufacturers, with steel as its core business. By the end of 2026, its crude steel production capacity is expected to reach 16 mln tons per year, ranking first in Southeast Asia and placing it among the top steelmakers globally.