Hoa Phat Steel in Vietnam aims to supply 3.6mn mt of construction steel in Jan 2020. Hoa Phat produced 2.8mn mt of crude steel in 2019 up from the prior year in line with Vietnam’s increasing crude steel output. In 2019, the steelmaker remains the largest supplier of steel in the domestic market occupying 26.2pc share in 2019. Hoa Phat’s steel product supply doubled to the Southern region and rose by 50pc to the central region.
In 2019, Hoa Phat steel supplied 2.77mn mt of high-quality construction steel, up 16.7pc from a year ago. Exports of steel were at 265,000mt, including exports to Japan, Cambodia, Korea, Taiwan, Malaysia, Australia and the US.
Hoa Phat will commence first batch of HRC production from its new facility, Hoa Phat Dung Quat Iron and Steel complex in the second quarter of 2020.This will increase total steel capacity to 4mn mt in the coming days.
In January, Hoa Phat Steel Pipe received order for 2,000mt of tubes worth $1.5mn to be exported to the US, Australia, Canada and India. The company added 100,000mt/yr capacity to produce steel pipes of large diameter upto 325mm in Hung Yen area in 2019 to become the only manufacturer in the north to supply steel pipe products. This pushed company’s share of steel pipes supply to 31.5pc in 2019 in the domestic market.
Hoa Phat’s revenue was at VND65,000bn ($2.8bn) and after-tax profit as VND7,500bn ($322mn), exceeding 13pc of the profit target for 2019. The company outpaced its 2019 guidance of revenue VND70,000bn and net income VND6,700bn.
In December quarter, production of construction steel and steel pipes reached a record high resulting in the highest contribution upto 80pc towards group’s revenue. Hoa Phat’s revenue was at VND18,282bn and after-tax profit at VND1,923bn, an increase of 9pc compared to December 2018.
According to the World Steel Association, Vietnam’s crude steel production was 20.06mn mt in 2019, up 43.2pc from 14mn mt in the prior year. Hoa Phat produced 750,800mt of steel pipes, up 14.8pc from the prior year. Its exports of steel pipes to major countries like North America, Southeast Asia, India, Australia and Latin America rose 17pc to 19,100mt in 2019.