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Sizzling-rolled coil metal produced by Hoa Phat: Credit score: Hoa Phat Group
South-east Asia’s largest steelmaker, Vietnam’s Hoa Phat Group, is shifting into container manufacturing.
It sees potential synergies with its core metal manufacturing enterprise.
Hoa Phat started constructing its manufacturing unit, Hoa Phat Container Manufacturing, in Vung Tau province in December and it’s anticipated to be up and operating in direction of the tip of this yr, with an annual output of 500,000 teu, all utilizing metal produced in-house.
Hoa Phat’s diversification follows the sturdy demand for container transport that precipitated an tools scarcity, and coincides with South Korea’s state-sponsored transfer into container manufacturing, additionally involving constructing a manufacturing unit in Vietnam to faucet into its decrease labour and land prices.
Based in 1992 as a buying and selling firm for development tools, Hoa Phat started steel-making in 1996 and at present produces eight million tonnes of metal yearly. Capability expansions might see as much as 14m tonnes a yr by 2024.
The goal of each Hoa Phat and South Koreais to cut back Chinese language fims’ monopoly on container manufacturing by way of majority state-controlled China Worldwide Marine Containers and Dong Fang and privately owned CXIC, which manufacture 96% of containers on the planet.
“Hoa Phat Group has benefits of big-scale manufacturing and being lively in materials sources in addition to expertise in manufacturing. These components have ensured prime quality and cheap costs for its cargo containers to compete with Chinese language merchandise,” mentioned Vu Duc Sinh, director of the Hoa Phat Container Manufacturing JSC.
In 2007, Vietnam Shipbuilding Business Group opened the Vinashin-TGC container manufacturing unit, producing 45,000 teu yearly, however ceased operations when Vinashin collapsed with $4.5bn debt in 2010.
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