The great project of 85,000 billion VND, how “big” is Hoa Phat’s capital “pumped” by 8 banks?
Hoa Phat is “pumped” 35,000 billion for Dung Quat 2 factory
On March 17, the Group Hoa Phat by the Chairman Tran Dinh Long Chairman of the Board of Directors performed the signing ceremony of credit granting contract for Hoa Phat Dung Quat 2 Iron and Steel Complex Project between Hoa Phat Dung Quat Steel Joint Stock Company (a member of Hoa Phat Group) and 8 banks. Co-financing customers signed syndicated credit contracts of up to VND 35,000 billion.
8 banks participating in this syndicated loan include Vietcombank as the lead bank, other banks are VietinBank, BIDV, Agribank, MB, VPBank, TPBank and MSB. This is Hoa Phat’s biggest loan ever with banks.
Mr. Long said: “This 35,000 billion VND credit from Vietcombank and 7 co-financed banks has an important meaning, ensuring the success of the project.”
Hoa Phat and 8 big banks signed a sponsorship agreement of 35,000 billion VND for Dung Quat 2 project. Photo: Hoa Phat.
How “terrible” is Hoa Phat’s big project?
Hoa Phat Dung Quat 2 Iron and Steel Production Complex Project is the largest project of Hoa Phat Group.
Dung Quat 2 has an area of over 280 hectares, located next to Hoa Phat Dung Quat 1 Iron and Steel Complex, in Binh Dong and Binh Thuan communes, Binh Son district. The total investment capital of the project is 85,000 billion VND.
This project focuses on hot rolled coil production. The design capacity of the project is 5.6 million tons of steel/year, of which, hot-rolled coil (HRC) is expected to be 4.6 million tons/year (up from 3 million tons/year previously). ); High quality steel bar and wire is expected to be 1 million tons/year. The total output of Hoa Phat Dung Quat Steel reaches 11 million tons of steel/year, contributing about VND 18 trillion to the state budget.
It is expected that Hoa Phat will start construction of Dung Quat 2 project in May 2022 and complete it within 3 years from the date of commencement. Currently, this project has cleared the ground, creating a clean land fund for 73% of the total project area. When the project is completed and put into operation, it will bring Hoa Phat’s steel output to 14 million tons/year, including 8.6 million tons of HRC and employ more than 8,000 local workers.
With Dung Quat 2, Hoa Phat will invest in the most modern and synchronous technology line in the world today, producing hot rolled steel coils from iron ore. When the project is completed, it will put Hoa Phat in the Top 30 largest steel enterprises in the world from 2025.
To supply power for this project, Hoa Phat Dung Quat Steel Joint Stock Company has also proposed to build a 5x60MW Hoa Phat Dung Quat 2 residual thermal power plant to supply electricity directly to the complex. Iron and steel production Hoa Phat – Dung Quat 2.
On February 26, a shipment of 35,000 tons of HRC for export was delivered to a European partner at Hoa Phat Dung Quat port. Photo: Hoa Phat.
Hoa Phat Dung Quat Steel Joint Stock Company is one of the largest enterprises in Quang Ngai province. Hoa Phat Dung Quat Iron and Steel Production Complex has a capacity of over 5 million tons/year, creating stable jobs for more than 12,000 people, mainly Quang Ngai people.
In 2021, the company produces 5.45 million tons of steel, of which 1.62 million tons are exported. Hoa Phat Dung Quat Steel has supplied 2.6 million tons of HRC steel to the market; in which, the export volume accounts for less than 30,000 tons. With HRC products, Hoa Phat Group is currently giving maximum priority to the domestic market, because Vietnam still lacks millions of tons per year.
Hoa Phat’s total revenue last year reached 90 trillion VND and created jobs for more than 13,600 employees with an average income of nearly 11 million VND/person/month.
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