Vietnam’s domestic producer Formosa Ha Tinh Corporation (FHS) which holds the annual capacity of 3.5 MnT has started its second blast furnace today, doubling its crude steel making capacity to 7 MnT.
The 2nd blast Furnace is 4,350 cubic meter which will increase the operating rates.After commencing second blast furnace ,the mill will then have a total capacity of 7.1 MnT pa, including 5.2 MnT pa of flat steel – primarily HRC and hot-rolled band as well as billet, 0.6 MnT pa of wire rod and 0.6 MnT pa of bars and coil.
Key details of Blast furnace no – 2, Formosa Ha Tinh Corporation :
1.Formosa Plastics Group, Taiwan’s China Steel Corporation and Japan’s JFE Steel Corporation are the main investors of Formosa Ha Tinh Limited.
2.The Son Duong port (930 hectares) an international harbor a part of FHS and between the Hai Phong port in the North and the Da Nang port in the South with 11-berth wharves, to meet the demand for raw materials importation and steel products exportation will be established.
3.This investment project is expected to not only bring the effect of import substitution for steel products but also make a positive contribution to Vietnamese gross domestic product (GDP) and the development of industrialization
4. FHS adopts large-scale equipment such as the blast furnace above 4,350 M 3 and advanced automated manufacturing processes to substantially reduce unit production costs.
Vietnam’s dependency on steel imports to come down– With commissioning of new blast furnace today domestic availability will increase which will reduce the dependency of imported material which majorly comes from China.
Also domestic re-rollers in Vietnam regularly look to Formosa Ha Tinh’s monthly offer as a kind of benchmark which is lower as compared to offers from Chinese major mills.Thus will result to shrink in imports of HRC to Vietnam in near term.
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