Hoa Phat Becomes the sole high-speed rail track manufacturer in Southeast Asia

On May 29, 2025, Hoa Phat Group and SMS group (Germany) signed a contract to supply technology and a production line for rail steel and structural steel with a capacity of 700,000 tons per year. The production line is expected to be completed within 20 months, with the first high-speed rail tracks scheduled to be rolled out in Q1/2027. This investment will make Hoa Phat the only enterprise in Southeast Asia capable of producing steel rails for high-speed railways.

Hoa Phat Group and SMS group (Germany) signed a contract for the supply of technology and a production line for rail steel and structural steel with a capacity of 700,000 tons per year

The signing ceremony was attended by Mr. Tran Dinh Long, Chairman of Hoa Phat Group; Mr. Nguyen Viet Thang, CEO; Ms. Tran Thi Thu Hien, Vice Director; and the Board of Directors of Hoa Phat Dung Quat Steel Joint Stock Company. Representing SMS group were Mr. Bernhard Steenken – Vice President of Sales for the APAC-MEA region, Mr. Roberto Miccoli – Technical Director, and other representatives in Vietnam of the Group.

This is the most modern production line in Europe, featuring a highly flexible four-roll mill system that ensures superior precision and consistent quality, meeting international standards for high-speed rail. Currently, 90% of the world’s rail steel rolling lines use SMS group’s technology and equipment.

Specifically, SMS group will design, supply, and install the production line for rail steel and special steel for Hoa Phat. The rolling process includes: Bloom & Beam Blank reheating furnace; rough rolling; multi-purpose reversing mill; automatic laser surface and profile defect detection system; non-destructive testing (NDT) system; precision straightening system; synchronized rail head hardening and rail drilling system. All key equipment will be manufactured in Germany under strict and uniform quality control standards, ensuring suitability for high-speed rail applications in Vietnam and globally.

The final products will include various types of special steel that no Vietnamese enterprise has produced before. These include metro rails, crane rails, high-speed railway rails, as well as U, I, H, V-shaped beams, and other specialty steels for key national railway projects and export markets.

Currently, only a few major steel corporations in the world can produce high-speed railway rails, such as Voestalpine (Austria), JFE (Japan), Baosteel (China), and JWS Steel (Italy)...

With the advantage of producing steel from low-impurity iron ore, Hoa Phat’s rails can reach lengths of up to 100 meters, offering excellent straightness, flatness, and superior hardness. Hoa Phat employs laser systems for precise rail geometry control and ultrasonic testing to detect internal defects, ensuring the highest rail quality before market launch. The products will meet the world’s most stringent standards, including EN 3674 (Europe), JIS E1120 (Japan), and TB/T2344 (China), meeting the rigorous technical requirements of the transportation and heavy industries.

With over 30 years of tradition and experience, Hoa Phat is fully confident in its ability to produce and supply all types of steel products, especially rails for high-speed railway projects, ensuring international quality, competitive prices, and on-time delivery

Mr. Tran Dinh Long, Chairman of Hoa Phat Group, stated that the group is focusing on producing high-quality steel for the railway, oil & gas, energy, and defense sectors, aiming to replace imported high-grade steel products. In line with its commitment to the Government, Hoa Phat is investing in a factory for rail, structural, and special steel production to provide top-quality, competitively priced products for high-speed rail projects and other key national infrastructure initiatives.

Mr. Bernhard Steenken, Vice President of Sales for the APAC-MEA region at SMS group, said:
“We have supplied similar production lines to global partners for high-speed railways in the U.S., China, India, Europe, and the Middle East. SMS group is committed to providing Hoa Phat with the best equipment and ensuring timely delivery. With this line, Hoa Phat will become the first enterprise in Southeast Asia to manufacture high-speed rail tracks and various other types of special steel to international standards. SMS group is not just building a plant; we are helping create a legacy for Hoa Phat and the steel industry in Vietnam.”

SMS group is a leading global metallurgical equipment supplier with over 150 years of experience in steel and non-ferrous metal technology. Since supplying its first rail production line in 1990, SMS group has delivered 14 such lines worldwide, meeting the highest standards in quality and efficiency. The company is also a long-time partner of Hoa Phat, having previously provided several equipment packages for the Hoa Phat Dung Quat and Hai Duong integrated steel complexes.

Hoa Phat Group is the largest steel producer in Vietnam and Southeast Asia. By the end of 2025, the Group's design capacity will reach 15 million tons per year, mainly focused on hot-rolled coil and high-quality steel for mechanical engineering. Hoa Phat holds the largest domestic market share and has exported various steel products to 40 countries and territories.

With this new line, Hoa Phat will become the first company in Southeast Asia to manufacture high-speed rail tracks and a wide range of other special steel products with international standards.

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