Vietnam-based steel producer Hoa Phat Group has announced that it has completed nearly 70 percent of its rail and special steel plant at the Dung Quat Economic Zone, with construction being accelerated ahead of the equipment installation and commissioning phase.
The plant will have an annual production capacity of 700,000 mt and represents an investment of more than VND 10 trillion. The facility will use technology supplied by Germany-based SMS group, including a flexible four-roll mill designed for high-precision production.
Equipment installation to accelerate from October
Hoa Phat is currently working simultaneously on the plant buildings, transport routes, overhead cranes, electrical and water systems and other supporting infrastructure. Areas that are completed are being handed over progressively to allow equipment installation to proceed alongside construction.
Starting in October 2026, the project is expected to enter an intensive phase involving the receipt, installation, adjustment and trial operation of equipment under the technical supervision and coordination of SMS group specialists. Hoa Phat is also training engineers and technical personnel in cooperation with SMS group and Hanoi University of Science and Technology's School of Materials to prepare for technology transfer and plant operations.
First high-speed railway rails scheduled for Q1 2027
The facility will manufacture high-speed railway rails, urban railway rails and crane rails, as well as U-, I-, H- and V-shaped sections and other special steel products.
Hoa Phat said its railway rails will be produced in lengths of up to 100 meters. The company will use laser equipment to control rail geometry and ultrasonic testing to identify internal defects before products are released to the market. The products are planned to comply with international standards including European, Japanese and Chinese railway specifications.
Hoa Phat expects to produce its first high-speed railway rails in the first quarter of 2027, targeting major railway projects in Vietnam and expanding its production of higher-value-added steel products.
