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Hoa Phat Group Partners with SMS Group to Pioneer High-Speed Rail Steel Production

शनिवार, 31 मई 2025

Synopsis: - Hoa Phat Group, a leading Vietnamese steelmaker, has signed a significant agreement with Germany's SMS Group to develop advanced production lines for high-speed rail steel. This collaboration aims to establish Hoa Phat as the first Southeast Asian company capable of manufacturing high-speed rail products.

A Landmark Agreement Iin Steel Production 

On May 29, 2025, Hoa Phat Group, a prominent steel manufacturer in Vietnam, entered into a pivotal agreement with Germany’s SMS Group. This collaboration is set to revolutionize the steel industry in Southeast Asia by enabling Hoa Phat to produce high-speed rail steel and shaped steel with an impressive annual capacity of 700,000 metric tons. The production lines are expected to be completed within 20 months, with the first high-speed rail products slated for release in the first quarter of 2027.

This agreement not only highlights the growing capabilities of Hoa Phat but also marks a significant advancement in Vietnam's infrastructure development. As the demand for high-speed rail systems increases in the region, this partnership positions Hoa Phat at the forefront of meeting these needs with locally produced materials.

 

 Advanced Technology for Superior Quality 

The production lines provided by SMS Group will feature Europe’s most advanced manufacturing technologies, including a state-of-the-art four-roll rolling system. This innovative system is designed to enhance flexibility, precision, and quality, ensuring that the steel produced meets international standards for high-speed rail applications. The comprehensive design includes several critical stages in the rolling process, such as bloom and beam blank furnaces, rough rolling, and multi-purpose reversible rolling.

Moreover, the production process will incorporate advanced technologies such as laser scanning for automated defect detection and non-destructive testing to ensure the highest quality of steel. The integration of these technologies will allow Hoa Phat to produce specialty steels that are currently unavailable in Vietnam, targeting key national infrastructure projects and international exports.

 

Meeting International Standards 

The output from the new production lines will include specialty steels for urban rail systems, crane rails, and high-speed railway tracks, as well as various shaped beams. These products will adhere to stringent international standards, including EN 13674 (Europe), JIS E1101 (Japan), and TB/T2344 (China), ensuring that they meet the rigorous specifications required by the transportation and heavy industrial sectors.

Hoa Phat Group’s chairman, Tran Dinh Long, emphasized the significance of this agreement, noting that 90% of the world’s high-speed rail manufacturers currently utilize SMS Group's technology. This partnership not only enhances Hoa Phat's product offerings but also aligns with the company's strategy to replace imported high-grade steel with domestically produced alternatives.

 

A Focus on Domestic Production & Innovation 

Hoa Phat Group has been strategically focusing on producing high-quality steel for various sectors, including railway, oil and gas, mechanical engineering, and defense. This investment in rail and specialty steel production is part of a broader strategy to optimize the company’s manufacturing chain, fulfilling commitments to the Vietnamese government for supplying steel for high-speed railway projects and other national infrastructure initiatives.

The collaboration with SMS Group reflects Hoa Phat's commitment to innovation and quality. By leveraging integrated steel production from low-impurity iron ore, the company aims to produce rails up to 100 meters in length, achieving exceptional straightness, flatness, and surface hardness. Advanced technologies like laser geometry measurement and ultrasonic defect detection will be employed to guarantee product quality before market release.

 

Commitment to Timely Project Execution 

Bernhard Steenken, Chief Sales Officer for the Asia-Pacific and Middle East regions at SMS Group, expressed confidence in the partnership, stating that SMS is committed to delivering top-quality equipment and ensuring that the project progresses on schedule. The establishment of these production lines will enable Hoa Phat to become the first enterprise in Southeast Asia to produce high-speed rail steel and a variety of specialty steels that conform to international standards.

SMS Group has a rich history of over 150 years in the metallurgical equipment sector, having supplied the first rail plant equipment in 1990. The company has installed 14 high-performance production lines worldwide, showcasing its expertise and reliability in the steel industry.

 

Key Takeaways 

- Hoa Phat Group has signed an agreement with SMS Group to produce high-speed rail steel.

- The new production lines will have an annual capacity of 700,000 metric tons and are set to be completed within 20 months.

- This partnership positions Hoa Phat as the first Southeast Asian company capable of manufacturing high-speed rail products.

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