SMS Group completes major expansion of Hoa Phat’s steelmaking plant

SMS group has successfully completed the installation and commissioning of a new converter melt shop for Hoa Phat Dung Quat Steel in Quang Ngai Province, Vietnam, significantly expanding the company’s production capacity. The facility, part of the Dung Quat 2 complex, is designed to produce six million tons of steel annually and was delivered in record time.

The project includes two 300-ton basic oxygen furnaces (BOF), dry gas cleaning systems, a twin 300-ton ladle furnace (LF), and two 300-ton Ruhrstahl Heraeus (RH) degassing units. Both installation phases—Group 1 and Group 2—were completed ahead of schedule, with the first converter commissioned in December 2024 and the second in August 2025.

High-quality steels and CO₂-conscious production

The new plant is tailored for the production of high-grade hot-rolled coil (HRC) and ultra-low carbon steels (including IF grades) for automotive and industrial applications. Technological highlights include an innovative swiveling sublance, twin ladle furnace setup for high availability, and RH vacuum degassing for superior alloy precision. Emission control is managed via a dry-type electrostatic precipitator (ESP) that already outperforms targets with dust levels below 20 mg/Nm³.

“SMS group is a trusted long-term partner of Hoa Phat,” said Mai Van Ha, CEO of Hoa Phat Dung Quat Steel. “Together, we completed this major project in just 12 months, with both BOF units fully operational well ahead of schedule. This marks a significant milestone for Vietnam’s steel sector and positions Hoa Phat as a leader in high-performance, sustainable steel production.”

Digital backbone and sustainable impact

The melt shop integrates cutting-edge automation and digital systems developed by SMS, including the SMS Data Factory, Ladle Management System, and Auto Tapping and Slopping Detection, all of which reduce manual interventions and optimize production. Real-time process optimization is enabled by the Level 2 Process Guidance (PG) system, helping reduce the carbon footprint and improving operational efficiency.

“By integrating advanced technologies, we ensure not only seamless operations but also drive sustainable growth,” said Bernhard Steenken, CSO APAC & MEA at SMS group. “This project reflects our long-standing partnership with Hoa Phat and sets new benchmarks in digital steelmaking.”

Earlier this year, SMS and Hoa Phat signed a follow-up contract for the supply of a rail and section mill with a capacity of 700,000 tons per year, further deepening the strategic collaboration between the two companies.

Source and Photo: SMS Group