Hoa Phat won VND2 trillion contract to provide post-tensioned steel

Viet Nam Pipe Industry Association and Hoa Phat Equipment and Accessories Company Ltd signed a long-term strategic co-operation contract to provide Hoa Phat’s post-tensioned steel. The signing was under the conference and exhibition on equipment and technologies in the technological era 4.0 held in HCM City on May 17-18.

Under the agreement, Hoa Phat would provide steel products including post-tensioned PC Bar, steel belt to all of business members of the Viet Nam Pipe Industry Association. The association committed to encourage its members to give priorities in using Hoa Phat’s steels and order when having demands.

Chairman of Hoa Phat Group’s management board Mr Tran Dinh Long attended the exhibition

Specifically, the two sides agreed to provide around 100,000 tonnes of post-tensioned steel worth VND2 trillion a year. The co-operation will start from September 2018 when the post-tensioning factory of Hoa Phat at Dung Quat Economic Zone comes into operation.

At the signing ceremony, the two sides also committed to create favourable conditions for delivery, logistics as well as warehouses to reduce costs. The signing has been considered as a good signal for development of the two sides. This could help Hoa Phat consume their products while pipe enterprises would not depend on imported items and having input materials at reasonable prices.

Speaking at the signing ceremony, Mr Tran Dinh Long, chairman of Hoa Phat’s management board highly valued activities of Viet Nam Pipe Industry Association though it is a special and small association. However, it collected all of business in the pipe industry.

“Currently, with the construction of Hoa Phat Dung Quat Steel Integrated Complex with capacity of 5 million tonnes per year, we have been the biggest customer of the association. We targeted to become the input supplier for post-tensioned concrete pipe companies,” Long said.

Mr Nguyen Ngoc Quang, director of Hoa Phat Equipment and Accessories Company Ltd signed a strategic co-operation agreement with Viet Nam Pipe Industry Association

Hoa Phat is a pioneer in producing high quality post-tensioned steel products, contributing to the replacement of imported steel. With a total investment capital of over VND1 trillion, Hoa Phat's post-tensioned steel plant will be deployed from the second quarter of this year. The phase 1 of the project has a capacity of 100,000 tonnes per year, including three high-end products: PC bar, PC Strand and PC Wire.

The product which is produced on the technological line of Europe, meets all domestic and foreign standards. In addition, the post-tensioning steel plant is located right next to Hoa Phat Dung Quat Steel Complex, which is completely autonomous for input materials, thus saving costs as well as meeting production schedule as well as improving competitiveness compared to imported goods.

Nghi Tran – Le Hang