Hoa Phat Group hands over first shipment of 100 containers

Hoa Phat Container Manufacturing JSC, a subsidiary of steel giant Hoa Phat, on Friday handed over a shipment of 100 20-foot containers to the Ho Chi Minh City-based New Way Lines Co., Ltd.

This is the first shipment of containers made by the company two years since its container plant opened in the expanded Phu My II Industrial Park in Phu My township, Ba Ria-Vung Tau province.

Hoa Phat's container plant has a total capacity of 500,000 TEUs a year, focusing on popular containers ranging from 20-40 feet. In its first phase, the plant will produce 180,000-200,000 TEUs of containers a year.

The main materials for the production of shipping containers are hot rolled coil (HRC) steel and weather-resisting SPA-H steel, a product made at the Hoa Phat Dung Quat Steel Integrated Complex, which is the only one in Vietnam that owns the technology to produce this type of steel.

Vu Duc Sinh, director of Hoa Phat Container, said that with its advantages and multi-year experience in the field of steel production, along with investment in the latest equipment and technology, the company is committed to providing the market with international-standard container products, meeting the needs of the maritime shipping industry.

In the coming time, Hoa Phat will optimize production management and expand the market to soon reach the designed first-phase capacity, while taking advantage of opportunities from the logistics market, he said, adding that the group will invest in the plant’s second phase at an appropriate time to reach a total capacity of 500,000 TEUs per year.

With this capacity, the container plant will need one million tonnes of HRC a year, which is very good for the Hoa Phat Dung Quat Steel Integrated Complex and Hoa Phat Dung Quat 2 project in the central province of Quang Ngai. Container manufacturing is a value-added product in Hoa Phat's iron and steel manufacturing ecosystem.

Vietnam's largest steel producer Hoa Phat Group recorded a post-tax profit of VND1.45 trillion ($61.2 million) in Q2, down 64% year-on-year.

Hoa Phat, listed on the Ho Chi Minh Stock Exchange (HoSE) as HPG, earned net revenue of VND29.8 trillion ($1.26 billion) in the period, down 21%.

In the first six months of 2023, HPG reported net revenue of VND56.67 trillion ($2.39 billion) and after-tax profits of VND1.83 trillion ($77.3 million), down 30% and 85% year-on-year, respectively.

Hoa Phat sold 2.9 million tons of construction steel, billets and HRC in the first half of the year, down 27% year-on-year.

HPG closed Friday at VND27,350 ($1.15) per share.