As part of the project, a new BOF steelmaking plant with a capacity of 300 tons per converter was constructed. The investment aims to increase production capacity to 6 million tons per year by 2028, with a particular focus on the production of high-quality hot-rolled coil (HRC) and low-carbon steel for automotive applications.
The SMS Group’s scope of supply included two 300-ton BOF converters equipped with primary dry gas cleaning plants (GCP) and secondary metallurgy facilities, a twin ladle furnace (LF), and two 300-ton duplex Ruhrstahl Heraeus (RH) units. The order was divided into two delivery packages, both of which were installed and commissioned ahead of schedule.
The plant features advanced technologies such as innovative rotating bottom balancing, a twin ladle furnace configuration, and an RH degassing system, all designed to enhance operational efficiency. Thanks to the dry-type gas cleaning system (ESP) with gas recovery, emissions have been significantly reduced, maintaining dust emission levels below the 20 mg/Nm³ target.
HPDQ CEO Mai Van Ha commented on the collaboration with SMS Group: “The installation and commissioning of the first BOF converter section, including live testing, were completed in just 12 months. Group 2 was commissioned eight months later, in August 2025. This demonstrates the efficiency and expertise of both parties. The project marks an important milestone for Vietnam’s steel industry and strengthens our leadership in steel technology by expanding our production capacity.”
The new steelmaking facility is equipped with state-of-the-art software and automation systems, including the SMS DataFactory and Ladle Management System. These systems enable real-time process data analysis, supporting CO₂ emission control and sustainability targets. The Level 2 Process Guidance (PG) system improves production quality and performance while reducing the carbon footprint. In addition, comprehensive electrical and automation solutions help optimize material handling and scrap yard operations.
Bernhard Steenken, CSO of SMS Group APAC & MEA, stated: “We are proud of the successful commissioning of the new facilities at Dung Quat 2. The project increases production capacity and sets new efficiency benchmarks. With continued collaboration and digital transformation, we will keep supporting sustainable steel production.”
In May 2025, Hoa Phat and SMS Group also signed a new contract for the supply of technology and production lines for a rail and section mill with an annual capacity of 700,000 tons. The partnership between the two companies in Vietnam has long been built on trust, innovation, and shared sustainability goals.
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