Hoa Phat Hai Duong Steel Joint Stock Company (Vietnam)

The subject was established in 2007 as a member of Hoa Phat Group, one of the largest multi-industry corporations in Vietnam. It specializes in manufacturing cast iron, steel billet, and construction steel. Currently, it is running the iron steel production complex in Kinh Mon Town, Hai Duong Province with total investment capital of more than VND 7 trillion. This complex has three furnaces using modern, closed technology from iron ore to finished steel products of all kinds with an output of 2.5 million tons per year.It is noted that the steel market had a sign of depression in the last months of 2022. The consumption volume of Hoa Phat Group had a slowdown, resulting in a high number of inventories. Accordingly, the Group decided to temporarily stop the operation of 4 furnaces (out of its total 7 furnaces), including two furnaces in Hoa Phat Dung Quat and two furnaces of the subject since Nov 2022 to ensure continued production and business activities.After that, from January to July 2023, the furnaces were reopened one by one, so production capacity in July reached over 95%, which was the highest level from October 2022 to now. However, as revealed, since mid-September, Hoa Phat group has stopped temporarily the furnace No. 3 in Hai Duong for maintenance, this has been planned since the beginning of the year, and this maintenance is expected to complete at the end of 2023. The furnace No. 3 has capacity 1.2 million tons per year (equivalent to 14% of total capacity).Anyway, stopping the operation of furnaces in Hoa Phat Hai Duong certainly affected its production capacity. Last year, the subject recorded a 10.10% decrease in revenue over the year 2021, meanwhile, the net income plunged by 79.13% in the same period.