SMS Group to supply advanced rail and section mill to Hoa Phat in Vietnam

SMS group has been selected by Hoa Phat Dung Quat Rail and Special Steel Joint Stock Company to supply a state-of-the-art rail and section mill facility in Vietnam. The project will see the installation of a complete rolling mill system with an annual production capacity of 700,000 tons, aimed at strengthening domestic steel production for infrastructure and industrial applications.

Located in the Dung Quat Economic Zone in Quang Ngai Province, the facility will be equipped with a full range of advanced technologies, including a latest-generation breakdown mill, universal reversing tandem mill, and SMS group’s CCS® (Compact Cartridge Stand) technology. These systems are known for their hydraulic under-load roll adjustment and quick-change features, which enhance flexibility and efficiency in section rolling.

The scope of supply also includes inline laser profile measurement with PROgauge, as well as advanced rail and section straightening machines. In terms of automation, the mill will incorporate Level 1 and Level 2 systems, including SMS group’s L2 Quality Execution System (QES), designed to ensure consistent product quality through digital monitoring and control.

“By delivering cutting-edge technology and tailored solutions, we aim to ensure that the plant achieves exceptional operational performance, product quality, and environmental sustainability,” said Bernhard Steenken, CSO for APAC & MEA at SMS group. “This partnership with Hoa Phat represents a significant milestone in advancing steel production capabilities in Vietnam and the region.”

Hoa Phat’s investment aligns with the company’s broader strategy to reduce reliance on imported high-quality steel products and support national infrastructure goals. “Ninety percent of rail manufacturers for high-speed railways in the world today rely on SMS group,” said Tran Dinh Long, Chairman of the Board of Directors at Hoa Phat Group. “Hoa Phat has been focusing on promoting the production of high-quality steel for the railways, oil and gas, and mechanical engineering industries.”

SMS group will handle most of the engineering, manufacturing, and testing of the main equipment at its facilities in Germany. The project is expected to be completed within 20 months of commencement.

The new mill will position Hoa Phat as a key supplier of rails and medium sections for infrastructure and high-speed railway projects across Vietnam and Southeast Asia, reinforcing its role in the region’s industrial development.

Source and Photo: SMS Group