SMS group successfully completes extensive expansion of Hoa Phat steelmaking plant in record time

• New converter melt shop in the Dung Quat 2 complex boasts an annual capacity of six million tons
• Two 300-ton basic oxygen furnaces (BOF) plus secondary metallurgy now in operation
• Plant produces high-alloy steels, including ultra-low carbon grades (IF) for the automotive and manufacturing industries
• Digitalization contributes to CO₂ emission reduction in steel production

Hoa Phat Dung Quat Steel, a member of the Hoa Phat Group, has awarded SMS group the contract to increase its steelmaking capacity at Dung Quat 2 in Quang Ngai Province, Vietnam by building a new BOF melting plant with a capacity of 300 tons per converter. This decision aims to expand production capacity to six million tons per year by 2028, with a focus on the production of high-quality hot-rolled coil (HRC) for automotive applications, among others, as well as low-carbon steel.

The scope of supply comprises two 300-ton BOF converters with primary dry gas cleaning plants (GCP) and secondary metallurgy facilities, including a 300-ton twin ladle furnace (LF) and two 300-ton duplex Ruhrstahl Heraeus (RH) units. The complete order was divided into two delivery groups. Both groups 1 and 2 were installed and commissioned ahead of schedule.

The plant incorporates several technological advancements, including the innovative swiveling sublance in the BOF, which offers greater flexibility and precision than traditional fixed designs, thereby boosting operational efficiency. The twin ladle furnace arrangement ensures high plant availability, while the RH degassing process improves steel quality and allows high-performance steels to be alloyed under vacuum conditions, enhancing the way specialized steel grades are produced. Furthermore, the advanced dry-type gas cleaning system (ESP) with gas recovery significantly reduces emissions. The plant currently maintains dust emission levels that are even lower than the target of 20 mg/Nm3.

Mai Van Ha, HPDQ CEO, applauds the collective efforts, “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.”

The new steel melt shop integrates cutting-edge software and automation systems such as the SMS Data Factory and Ladle Management System, which enhance precision and control without manual interventions. SMS’s smart solutions are employed to transform process data into valuable insights. The Data Factory centralizes plant data, while the Auto Tapping and Slopping Detection system automates BOF operation and event identification. This data supports existing and future digital applications, aiding in the transition to a fully integrated digital management platform, crucial for advancing CO₂ emission control and sustainability targets.

The level 2 Process Guidance (PG) system optimizes processes, significantly reducing the carbon footprint through real-time data analysis and decision-making, thus improving production quality and performance. In addition, comprehensive electrical and automation solutions enhance material handling and scrap yard operations.

“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,” said Bernhard Steenken, CSO, APAC & MEA, SMS group.

Earlier in May 2025, Hoa Phat and SMS signed another contract to supply the technology and production lines for a rail and section mill with an annual capacity of 700,000 tons. SMS and Hoa Phat’s partnership in Vietnam has long been built on trust, ambition, and shared goals for innovation and sustainability in the industry.