Vietnam’s leading steelmaker Hoa Phat Group has announced that it has resumed operations at the blast furnace No. 1 at its Dung Quat Iron and Steel Integrated Complex, following planned refractory maintenance. This strategic move is set to increase steel output and sales volumes in the second half of 2025.
Five operational furnaces, major capacity expansion ahead
The Dung Quat site currently houses five blast furnaces, four of which belong to the Dung Quat 1 project, each with a volume of 1,080 cubic meters. In contrast, the Dung Quat 2 project, nearing completion, features larger 2,500 cubic meter furnaces, designed for higher efficiency and lower energy consumption.
Self-generated power slashes costs
Hoa Phat has equipped the Dung Quat 2 facility with advanced environmental technologies to not only meet but exceed current and upcoming regulatory requirements. These steps are in line with global decarbonization and energy efficiency targets.
Meanwhile, in the first half of 2025, Hoa Phat achieved a significant milestone by self-generating 90 percent of the electricity required for steelmaking. This was done by recovering residual heat and coke oven gas from its closed-loop production system. The result is a cost saving of approximately VND 3.5 trillion ($133.45 million).
Steel capacity set to reach 16 million mt by 2025
The second phase of Dung Quat 2 is scheduled for completion by September 2025. Once finished, Hoa Phat’s total steel production capacity will reach 16 million metric tons per year, including 9 million mt of hot rolled coil.
This level of output will fully cover Vietnam’s domestic HRC demand, solidifying Hoa Phat’s leadership in Southeast Asia's steel industry.
