SMS group to supply state-of-the-art rail and section mill facility to Hoa Phat in Vietnam

• SMS supplies complete rolling mill including all automation systems
• Annual production capacity of 700,000 tons of high-quality steel products
• Advanced automation and digitalization boost productivity while reducing operational costs and energy consumption
• The new plant will enable Hoa Phat to produce rails and medium sections for infrastructure development

Hoa Phat Dung Quat Rail and Special Steel Joint Stock Company, Vietnam, has partnered with SMS group to deliver a state-of-the-art rail and section mill with an annual production capacity of 700,000 tons. The plant will be built in the Dung Quat Economic Zone, located in Binh Dong Ward, Binh Son District, Quang Ngai Province. The scope of the project includes the supply of the main technological equipment, including breakdown mill, universal reversing tandem mill, in-line profile gauge with SurfTech, straightening machines for section and rail straightening, hot and cold saws, and special machines for rail finishing.

For the project, SMS group will largely carry out the engineering, manufacturing, and testing of the main equipment in its workshops in Germany. The mill will feature a breakdown mill of the latest generation with hydraulic bottom roll adjustment and the latest generation of CCS^® Stands (Compact Cartridge Stands). SMS group’s CCS^® stands, featuring hydraulic under-load roll adjustment systems and automated quick changing systems for rolls and mill guides are regarded as the industry standard in section rolling mills and are utilized by prominent section and rail manufacturers worldwide. The inline laser profile measuring system PROgauge for rails and profiles enables inline measurement of profile dimensions and rails across the entire dimensional range as well as the detection and analysis of surface defects. The CRS^®-type straightening machine, combined with a new generation of hydraulically adjustable V-straightening machine, will ensure optimum straightening results for rails with minimum residual stress levels.

The mill will be equipped with advanced Level 1 and Level 2 automation, including digital solutions, such as the L2 Quality Execution System (QES), designed to ensure superior, consistent, and traceable product quality.

The sophisticated plant automation and digitalization solutions will not only elevate productivity, but also significantly reduce operational costs and energy consumption, marking a new era of efficiency and innovation in manufacturing.

In addition to the tried and tested high-performance equipment, the technological know-how and commissioning experience in the field of rail and section rolling is one of the reasons for the decision in favor of SMS group.

Tran Dinh Long, Chairman of the Board of Directors of Hoa Phat Group, said: “90 percent of rail manufacturers for high-speed railways in the world today rely on SMS group. Hoa Phat has been focusing on promoting the production of high-quality steel for the railways, oil and gas, and mechanical engineering industries, contributing to replacing high-quality steel products that would otherwise have to be imported.”

Bernhard Steenken, CSO, APAC & MEA, SMS group, stated: “This partnership with Hoa Phat represents a significant milestone in advancing steel production capabilities in Vietnam and the region. By delivering cutting-edge technology and tailored solutions, we aim to ensure that the plant achieves exceptional operational performance, product quality, and environmental sustainability. SMS group is proud to contribute to the region’s industrial development and long-term growth.”

The advanced facility will enable Hoa Phat to produce high-quality steel products, boosting its role as a key player in Vietnam’s steel industry. It will serve high-speed train and infrastructure projects throughout the region with high quality medium sections, rails and other products. Production is expected to begin within 20 months of the project’s start date, demonstrating SMS group’s ability to deliver efficient and timely solutions.