Hoa Phat Group will become the first high-speed rail manufacturer in Southeast Asia with the new agreement signed with SMS group. Under the contract signed on May 29, 2025, the rail steel and structural steel production line with an annual capacity of 700,000 tons is planned to be completed within 20 months. The first products are expected to be launched in the first quarter of 2027.
This new investment will enable Hoa Phat to produce metro, crane and high-speed train rails, as well as special types of steel such as U, I, H and V type beams. The production line will include a high-precision four-roll rolling system, laser profile inspection technologies and quality assurance systems that meet international standards.
SMS group is responsible for the engineering, equipment supply and installation of the line, and Bernhard Steenken, the company's Vice President of Sales APAC-MEA, emphasized the importance of this project for the regional industry, stating, “We are building a legacy for Hoa Phat and the Vietnamese steel industry.”
Hoa Phat Group Chairman Tran Dinh Long stated that they aim to reduce dependence on imports through the production of high-quality steel and contribute to strategic sectors, including railways.
The rails, which will be produced with high-quality iron ore, will reach lengths of up to 100 meters and meet demanding standards such as Europe (EN 3674), Japan (JIS E1120) and China (TB/T2344).
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