Steel maker Hoa Phat to introduce containers to the market in 2022
The demand for empty containers in the world has increased due to strong development of e-commerce, import-export activities, and the impacts from COVID-19 pandemic.
Facing the current shortage of containers, Hoa Phat has decided to invest in container manufacturing with a capacity of 500,000 TEUs per year, said the company’s representatives. The group made the decision since steel remains its main business, accounting for nearly 90 percent of its revenue and profits.
The steel firm estimates that about 1 million tons of hot rolled coil steel a year to produce 500,000 TEU container capacity per year. And its second steel project in Dung Quat mainly produce HPC steel, Dau Tu Newspaper reported.
Empty container supply is in short of supply as 90 percent of the world's containers are produced by China. However, in the past 2 years, China has reduced container output by 40 percent. China's steel production capacity has also decreased.
The southern region of Vietnam accounts for 70 percent of the container demand. Hoa Phat said it will open container plants in Binh Duong or Dong Nai, near Cat Lai, Cai Mep - Thi Vai ports.
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