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SMS group Successfully Expands Hoa Phat Steelmaking Plant
09/29/2025 - SMS group has successfully completed the contract for a new basic oxygen steelmaking (BOF) plant for Hoa Phat Dung Quat Steel, a member of the Hoa Phat Group, at Dung Quat 2 in Quang Ngai Province, Vietnam.
SMS group said the scope of supply includes two 300-metric-ton BOF converters with primary dry gas cleaning plants. It also features secondary metallurgy facilities with a 300-metric-ton twin ladle furnace and two 300-metric-ton duplex Ruhrstahl Heraeus (RH) units.
The companies said the aim of the expansion is to increase production capacity to 6 million metric tons annually by 2028. Hoa Phat will focus on the production of high-quality hot-rolled coil for automotive and other applications, as well as low-carbon steel.
The complete order was divided into two groups; both groups 1 and 2 were installed and commissioned ahead of schedule in December 2024 and August 2025, respectively.
“Overall, the commissioning of this equipment marks a significant milestone in the Vietnamese steel industry and significantly boosts our production capacity to position us as a leader in steel technology. The integration of cutting-edge solutions underscores our commitment to efficiency, innovation, and sustainable growth in the steel industry,” said Mai Van Ha, chief executive officer of Hoa Phat Dung Quat Steel.
Technological advancements include the swiveling sublance in the BOF. The twin ladle furnace arrangement ensures high plant availability while the RH degassing process improves steel quality and allows high-performance steels to be alloyed under vacuum conditions. The advanced dry-type gas cleaning system with gas recovery reduces emissions.
Hot Phat said the plant maintains dust emission levels lower than the target of 20 mg/Nm3.
The new plant includes the SMS Data Factory and Ladle Management System and SMS smart solutions. The data factory centralizes plant data while the auto tapping and slopping detection system automates BOF operation and event identification.
The level 2 process guidance system optimizes processes and reduces the carbon footprint while the comprehensive electrical and automation solutions enhance material handling and scrap yard operations, the companies said.
The companies signed another contract in May 2025 to supply the technology and production lines for a rail and section mill with an estimated capacity of 700,000 metric tons annually.
The companies said the aim of the expansion is to increase production capacity to 6 million metric tons annually by 2028. Hoa Phat will focus on the production of high-quality hot-rolled coil for automotive and other applications, as well as low-carbon steel.
The complete order was divided into two groups; both groups 1 and 2 were installed and commissioned ahead of schedule in December 2024 and August 2025, respectively.
“Overall, the commissioning of this equipment marks a significant milestone in the Vietnamese steel industry and significantly boosts our production capacity to position us as a leader in steel technology. The integration of cutting-edge solutions underscores our commitment to efficiency, innovation, and sustainable growth in the steel industry,” said Mai Van Ha, chief executive officer of Hoa Phat Dung Quat Steel.
Technological advancements include the swiveling sublance in the BOF. The twin ladle furnace arrangement ensures high plant availability while the RH degassing process improves steel quality and allows high-performance steels to be alloyed under vacuum conditions. The advanced dry-type gas cleaning system with gas recovery reduces emissions.
Hot Phat said the plant maintains dust emission levels lower than the target of 20 mg/Nm3.
The new plant includes the SMS Data Factory and Ladle Management System and SMS smart solutions. The data factory centralizes plant data while the auto tapping and slopping detection system automates BOF operation and event identification.
The level 2 process guidance system optimizes processes and reduces the carbon footprint while the comprehensive electrical and automation solutions enhance material handling and scrap yard operations, the companies said.
The companies signed another contract in May 2025 to supply the technology and production lines for a rail and section mill with an estimated capacity of 700,000 metric tons annually.
