Vietnamese steel producer Hoa Phat Group has signed a contract with German plantmaker SMS Group to establish a high-speed rail track manufacturing facility that will make it the only company in Southeast Asia capable of producing steel rails for high-speed railways. The contract involves the supply of technology and a production line for rail steel and structural steel with a capacity of 700,000 mt per year. The production line is expected to be completed within 20 months, with the first high-speed rail tracks scheduled to roll out in the first quarter of 2027.
SMS Group will design, supply, and install a highly advanced production system that includes a four-roll mill system, reheating furnaces, rolling equipment, laser detection systems, and precision straightening technology, all manufactured in Germany to meet international standards.
This investment will enable Hoa Phat to produce various types of specialized steel products that no Vietnamese enterprise has manufactured before, including metro rails, crane rails, high-speed railway rails, and specialty structural beams. The company will join an exclusive group of global steel producers capable of producing high-speed railway rails, alongside major players like Voestalpine from Austria, JFE from Japan, Baosteel from China, and JWS Steel from Italy.