Cancel
Companies

Hoa Phat plans to add $2.5 billion for Dung Quat steel complex expansion

Bich Phuong Tuesday | 02/11/2020 10:56

Photo courtesy of Hoa Phat Group

Vietnam’s leading steel maker’s board of directors has decided to inject additional $2.5 billion to expand its Dung Quat steel complex, it said in a statement.

The expanded project on 166 hectare of land is expected to produce 5 million tons of steel annually.

The complex construction will be implemented in two phases. The first phase is scheduled to complete and put into operation within 36 months after company receives land and construction permit.

And the second phase will be deployed and completed within 36 months after the first phase is completed.

During recent meeting, the company's leaders said they had arranged nearly $2.2 billion, in which Hoa Phat has about $1.26 billion and will borrow $841 million from Vietcombank and VietinBank.

The remaining $84.1 million will be added from other sources, including annual profit.

As of end-2019, the company’s revenue reached nearly $2.7 billion revenue and $315 million after-tax profit, exceeding 13% of the profit plan in 2019, down nearly 13% from 2018.

The leader of Vietnam’s steel industry recently announced the sales of construction steel in January at a modest rate of 175,800 tons, down 40.6% over the previous month due to the impact of holidays.

► Hoa Phat’s construction steel export rises over 11% in 2019

Same category news

Hot news of the day

Latest news