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SMS group announces partnership with Hoa Phat in Vietnam

Germany-based SMS group will supply a state-of-the-art rail and section mill facility with an annual capacity of 700,000 tons to Vietnamese steel giant Hoa Phat Dung Quat Rail and Special Steel Joint Stock Company.

SMS group announces partnership with Hoa Phat in Vietnam

Germany-based SMS group will supply a state-of-the-art rail and section mill facility with an annual capacity of 700,000 tons to Vietnamese steel giant Hoa Phat Dung Quat Rail and Special Steel Joint Stock Company. The plant, to be constructed in the Dung Quat Economic Zone in Quang Ngai Province, will produce rails and medium sections, significantly contributing to regional infrastructure projects.

As part of the project, SMS group will provide the main technological equipment, including a latest-generation breakdown mill with hydraulic bottom roll adjustment, a universal reversing tandem mill, the SurfTech-supported inline profile measuring system, rail and section straightening machines, as well as hot and cold saws.

Manufacturing, engineering, and testing of the equipment will take place at SMS group’s workshops in Germany. The mill will be equipped with CCS® stands—recognized as the industry standard—that offer automatic roll and guide changing systems, enhancing production flexibility and efficiency. Additionally, the PROgauge laser profile measuring system will enable precise inline measurement of rails and profiles across the entire dimensional range, along with immediate detection of surface defects.

On the automation front, the plant will feature Level 1 and Level 2 automation solutions, including a digital Quality Execution System (L2 QES), ensuring consistent product quality and traceability. The advanced automation technologies are also expected to deliver significant savings in energy consumption and operational costs.

Tran Dinh Long, Chairman of Hoa Phat Group, stated, “Ninety percent of the world’s high-speed rail manufacturers rely on SMS Group technology. We aim to increase our production of high-quality steel and reduce imports.”

Bernhard Steenken, CSO for APAC and MEA at SMS group, commented, “This partnership marks a major step forward in advancing steel production capacity in Vietnam and the region. With cutting-edge technology, we strive to deliver outstanding performance, quality, and environmental sustainability.”

The new facility is expected to commence production approximately 20 months after the project launch, strengthening Hoa Phat’s position in the regional steel industry and supplying high-quality products for high-speed train and infrastructure projects.

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