Vietnam-based Hoa Phat Group will launch the second phase of its Dung Quat project, which includes two blast furnaces and a flat rolling complex, at least two months later than planned due to the spread of the coronavirus which has resulted in stricter travel regulations.
The launch of the blast furnace No. 3 at the Dung Quat project is now expected in the June-July period, while initially it was scheduled for April, according to market sources. “The main reason is that Chinese workers [involved in installation and technical preparation of the equipment] cannot go to Vietnam now,” a source said. Hoa Phat may start HRC production in the third quarter if there are no other delays, according to people in the market.
In the first phase of the Dung Quat project, the capacity is mostly focused on long products, such as rebar and wire rod, while Hoa Phat Group has started to provide some billet for the export market. In the second phase, the company will produce hot rolled coil and will try to focus also on the local market, but some export sales are possible. The total steelmaking capacity of the second phase is 2 million mt per year.
