Four Years, One Vision at Dung Quat

From 2022 to 2026, Hoa Phat Dung Quat Steel JSC and Primetals Technologies Have Helped Move Vietnam's Steel Production into a New League.

When Hoa Phat Dung Quat Steel JSC launched its Dung Quat 2 project in 2022, the stakes were clear: expand into higher-quality steel and new global markets, or risk falling behind in a rapidly consolidating industry. Four years later, with a total capacity of 5.5 million tons per year, the Dung Quat site has helped elevate the Hoa Phat Group into the top 30 steel producers worldwide. For Plant Director Mai Van Ha, this milestone is one step in a larger ambition. “Hoa Phat’s vision is to become Vietnam’s leading industrial manufacturing group in the steel sector,” says Mai.

To make that vision real, Hoa Phat partnered with Primetals Technologies to expand and modernize the integrated steelworks. From the outset, the scope went far beyond simply adding tonnage.

Dung Quat 2 included two slab casters, one hot rolling mill, modern automation, and comprehensive digitalization solutions: Through-Process Quality Control (TPQC), intelligent digital assistants, and a production management system. With the new production line fully operational, Hoa Phat Dung Quat has not only climbed the global rankings but has also pushed Vietnam’s steel production to new levels of quality and capability.

Even before Dung Quat 2, Hoa Phat was already Vietnam’s leading producer of hot-rolled coil (HRC) and a key player in Southeast Asia. But the market was changing. Customers in automotive and home appliances were demanding higher and more consistent quality—and they needed domestic suppliers that could meet international standards. Dung Quat 2 was designed to answer that demand.

“Dung Quat 2 marks our entry into the market for high-quality HRC products,” says Mai. “Our goal, besides meeting the needs of the general steel market, is to supply steel to the automotive industry as well as to home appliance manufacturers that use HRC.”

To reach those markets, Hoa Phat needed a partner familiar with global quality benchmarks. Primetals Technologies brought decades of experience in supplying high-performance production lines to producers worldwide.

“Primetals Technologies’ long history of supplying high-quality production lines meant the supplied technology would help Hoa Phat produce premium-grade steel,” explains Mai. “We needed to meet the increasing demands of both the Vietnamese and international markets. Even during the commissioning stage, HRC products provided to Hoa Phat customers were well received.”

Behind the numbers is a close day-to-day collaboration between teams. “We can see that the machinery and equipment supplied by Primetals Technologies are of excellent quality, and the delivery schedule was very fast,” says Mai. “In addition, the technology transfer services, commissioning support, and after-sales services provided have been very good, contributing significantly to the successful commissioning of the Dung Quat 2 plant.” Primetals Technologies experts worked on site in Vietnam, supporting Hoa Phat’s engineers throughout implementation and commissioning. For the operators at Dung Quat, this meant more than new equipment — it meant learning new ways of working, with quality built into every stage of production.

While the supply and commissioning of mechanical equipment was key to expanding the steelworks for Hoa Phat, it was the integrated automation systems and digital innovations that elevated the project beyond expectations. Nguyen Trong Luan and Ngo Thoi Nguyen, both vice directors of the CCM and HSM plant, spoke highly of the key automation upgrades that have transformed production at Hoa Phat. Nguyen Trong Luan highlighted the reduction in the need for human intervention and improved reliability, from the automated control of cooling water and casting speeds to the automatic adjustment of rolling speeds.

The continuous caster and hot-strip mill at Hoa Phat included the manufacturing execution system (MES), a manufacturing control software solution designed to optimize steel production processes. Integrating with process controls and Enterprise Resource Planning (ERP), the MES at Hoa Phat is a crucial link connecting ERP with scheduling and automation systems. Real-time production data is provided to operators, enabling clear decision-making. Ngo Thoi Nguyen commented, “Through these solutions, actual data inside the production line is collected continuously and accurately via measurement devices installed along the line—such as thickness gauges, width gauges, and surface quality inspection systems. This helps Hoa Phat build the best possible production and maintenance plans.”

The collection of data from integrated digital systems has proven invaluable to the new production line. Centralizing information in the TPQC system provides operators and management with the information they need to make well-informed decisions regarding quality. Finally, the early detection capabilities of Asset Life Expert (ALEX) ensure that maintenance needs are addressed quickly and efficiently so operations can continue safely and smoothly.

As the Southeast Asian leader in steel production, Hoa Phat Dung Quat has now secured its position as both a domestic and international supplier of high-quality steel products. With Dung Quat 2, the company has opened the door to new, more demanding markets. High-quality HRC for automotive and home appliances is already expanding Hoa Phat’s presence across the region and beyond.

The latest automation and digitalization upgrades ensure that production lines run efficiently and reliably, giving operators the information they need to keep yield high and equipment in good condition. For customers, that translates into stable supply and consistent product performance. For Vietnam’s steel industry, it demonstrates that local producers can compete at the highest level.

With improved quality, safety, and reliability, Hoa Phat Dung Quat is setting a new standard for steel production in Vietnam and Southeast Asia — and showing how a focused, long-term partnership can reshape an entire segment of heavy industry.