SMS completes expansion of Vietnam steelmaking plant

The BOF steel converter commissioned at Hoa Phat’s facility in Vietnam. Photo: SMS group GmbH

Hoa Phat Dung Quat Steel, a subsidiary of Vietnam’s leading industrial conglomerate Hoa Phat Group, has taken a major step forward in its steelmaking ambitions by awarding SMS group the contract to expand its production capacity at the Dung Quat 2 site in Quang Ngai Province.

The project centres on the construction of a new basic oxygen furnace (BOF) melting plant, featuring converters with a capacity of 300 tonnes each. This strategic move is designed to elevate the plant’s annual output to six million tonnes by 2028, with a strong emphasis on producing high-quality hot-rolled coil (HRC) for automotive applications and low-carbon steel.

The scope of supply includes two 300-tonne BOF converters, each equipped with dry-type gas cleaning systems, alongside secondary metallurgy facilities such as a twin ladle furnace and two Ruhrstahl Heraeus (RH) degassing units. The entire order was split into two delivery groups, both of which were installed and commissioned ahead of schedule. The first BOF converter section was completed in December 2024, just 12 months after the start of installation, including live testing. Group 2 followed swiftly, with commissioning finalised in August 2025.

Significant milestone
Mai Van Ha, Hoa Phat Dung Quat Steel’s CEO, said: “SMS group is a trusted long-term partner of Hoa Phat. Together, we managed to complete this major project in record time. The installation and commissioning of the first BOF converter section were completed in December 2024 after only 12 months, including live tests. Group 2 was already commissioned eight months later, in August 2025. This demonstrates the efficiency and expertise of both parties. Overall, the commissioning of this equipment marks a significant milestone in the Vietnamese steel industry and significantly boosts our production capacity to position us as a leader in steel technology. The integration of cutting-edge solutions underscores our commitment to efficiency, innovation, and sustainable growth in the steel industry.”

Pictured right: celebrations at Hoa Phat’s steelmaking facility with SMS group employees marking the successful commissioning of the 300-tonne basic oxygen furnace

The new melt shop integrates several technological advancements, including a swivelling sublance in the BOF converters, which offers greater flexibility and precision than traditional fixed designs. The twin ladle furnace configuration ensures high plant availability, while the RH degassing units enable alloying under vacuum conditions, improving the quality of high-performance steels. The dry-type electrostatic precipitator (ESP) gas cleaning system also contributes to environmental performance, maintaining dust emissions well below the target of 20mg/Nm³.

Digitalisation also plays a central role in the plant’s operations. SMS group has equipped the facility with its Data Factory and Ladle Management System, enabling precise control and reducing the need for manual intervention. The Auto Tapping and Slopping Detection system automates BOF operations and event identification, while the Data Factory centralises process data to support future digital applications. These systems are key to Hoa Phat’s transition to a fully integrated digital management platform, which is essential for achieving CO² emission control and sustainability targets.

Operational efficiency
The level 2 Process Guidance system further enhances operational efficiency by enabling real-time data analysis and decision-making, reducing the carbon footprint and improving production quality. SMS group also supplied comprehensive electrical and automation solutions to optimise material handling and scrap yard operations.

Bernhard Steenken, CSO for APAC and MEA at SMS group, said: “We are proud of the successful commissioning of Hoa Phat’s new facilities at Dung Quat 2, reflecting our strong partnership and commitment to innovation. This project enhances production capabilities and sets new efficiency standards. By integrating advanced technologies, we ensure seamless operations. We look forward to further collaboration, advancing digital transformation, and supporting sustainable steel production.”

The partnership between Hoa Phat and SMS group continues to deepen. In May 2025, the two companies signed an additional contract for the supply of technology and production lines for a rail and section mill with an annual capacity of 700,000 tonnes. Their longstanding cooperation is built on mutual trust and a shared vision for innovation and sustainability in Vietnam’s steel industry.