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Hoa Sen reduces energy consumption in cooperation with SP Group

Vietnam-based steel producer Hoa Sen Group (HSG) has simultaneously commissioned environmentally friendly energy solutions at two of its major facilities in line with its sustainable production goals.

Hoa Sen reduces energy consumption in cooperation with SP Group

In cooperation with SP Group, the company has started the installation of industrial refrigeration systems with a total capacity of 1,900 RT at Hoa Sen Phu My and Hoa Sen Nghe An steel mills. Based on modern and flexible technology, this system is expected to be operational in the second quarter of 2026.

The system is implemented using the Cooling-as-a-Service (CaaS) model developed by SP Group, making Hoa Sen the first company in Vietnam to use this model. The parties had previously worked together on the energy transition with 17.6 MWp of solar energy systems installed on factory rooftops. These systems have already been commissioned at Hoa Sen Phu My by March 2025 and Hoa Sen Nghe An by June 2025.

According to calculations, the new cooling system will reduce electricity consumption related to cooling activities by over 30% each year and prevent the emission of over 14,000 tons of CO₂. This is equivalent to the annual emissions of around 3,300 vehicles or the annual electricity consumption of 3,900 households in Vietnam.

SP Group, one of the leading energy companies in the Asia-Pacific region, owns electricity and gas transmission and distribution infrastructure in Singapore and Australia, serving approximately 1.7 million users.

Financial Performance Remains Strong

HSG also released its preliminary results for the third quarter of the 2024-2025 fiscal year (April-June 2025). In this period, sales are expected to be 474,112 tons, consolidated revenue of VND 9,504 billion, and profit after tax of approximately VND 274 billion.

Total production for the first 9 months of the year (October 1, 2024 - June 30, 2025) is estimated at 1.4 million tons, 73% of the annual target. Revenue is estimated at VND 28,176 billion and net profit after tax at VND 647 billion.

Hoa Sen's performance shows that the company has exceeded its previously set high scenario annual profit after tax target of VND 500 billion by 29% in 9 months.

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