Hoa Phat to ship steel rails for high-speed railways in early 2027

(Chinhphu.vn) - Hoa Phat has just signed a contract with a German partner to provide technology and production lines, expected to produce the first high-speed rail steel products in the first quarter of 2027. With this production line, Hoa Phat Group has become the only enterprise in Southeast Asia to produce steel rails for high-speed railways.

Hoa Phat Group and SMS Group (Germany) signed a contract to supply technology and production lines for rail steel and shaped steel with a capacity of 700,000 tons per year - Photo: VGP/PT

On May 29, Hoa Phat Group and SMS Group (Germany) signed a contract to supply technology and production lines for rail and profile steel with a capacity of 700,000 tons per year. The line is an important component of Hoa Phat's rail and profile steel factory project in Dung Quat ( Quang Ngai ) with a total investment of 14,000 billion VND.

Responding to the Government Electronic Newspaper, Chairman of the Board of Directors of Hoa Phat Group Tran Dinh Long said: It is expected that the production line will be completed in 20 months, producing the first product in the first quarter of 2027. The output products are special steels such as rail steel for urban railways, bridge cranes, high-speed railways, or shaped steels (U, I, H, V) and special steels. These products serve key national railway projects and are exported to international markets.

First product launch in Q1/2027

This is the most modern production line system in Europe with a super flexible 4-axis rolling system, providing outstanding precision, ensuring consistent product quality according to international high-speed rail standards.

Specifically, SMS Group will design, supply and install the production line of rail steel and special steel for Hoa Phat. This rail rolling process will include: Bloom & Beam Blank billet furnace; rough rolling; multi-purpose reverse rolling; laser scanning system to automatically detect surface defects and product contours; non-destructive steel quality control system (NDT); fine straightening system to ensure optimal quality; rail end tempering system and synchronous rail hole drilling system.

All main equipment is manufactured in Germany with a strict and synchronized quality control system, ensuring that it meets the requirements for producing rails for high-speed railways in Vietnam and around the world.

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

Responding to the Government Electronic Newspaper, Chairman of the Board of Directors of Hoa Phat Group Tran Dinh Long said: It is expected that the production line will be completed in 20 months, producing the first product in the first quarter of 2027 - Photo: VGP/PT

Products meet the world's most stringent standards

With the advantage of steel refining from iron ore with few impurities, Hoa Phat steel rails produce lengths of up to 100 m, high straightness, flatness, and superior rail hardness. Hoa Phat controls the precise geometry of the rails with laser equipment, ultrasonically detects internal defects to ensure perfect steel rail quality before being released to the market.

The project's products meet the world's most stringent standards, including EN 3674 (Europe), JIS E1120 (Japan) and TB/T2344 (China), meeting strict technical requirements in the transportation and heavy industry sectors.

Chairman of the Board of Directors of Hoa Phat Group Tran Dinh Long said that the Group focuses on promoting the production of high-quality steel to serve the railway, oil and gas industry, mechanical engineering and defense sectors, contributing to replacing high-quality steel products that must be imported.

"Hoa Phat invests in a factory to produce rail steel, shaped steel and special steel to optimize the production chain, while fulfilling the Group's commitment to the Government on manufacturing and supplying steel products for high-speed railway projects in particular and key national projects in general," Mr. Long affirmed.

Mr. Steenken, Regional Sales Director APAC-MEA, SMS Group Corporation informed: SMS has provided similar chain systems to partners globally, serving high-speed rail in the US, China, India, Europe & Middle East.

SMS Group commits to provide Hoa Phat with the best quality equipment line system and ensure the progress as planned. With this line, Hoa Phat Group will become the first enterprise in Southeast Asia to produce high-speed railway steel and many other special steels with international quality standards.

SMS group is a world-leading metallurgical equipment supplier with a tradition of over 150 years providing technology and equipment for the steel & non-ferrous metals industry. SMS group supplied its first rail mill equipment in 1990 and has now supplied 14 lines globally, ensuring the highest standards of quality and performance.

This is also a long-term partner of Hoa Phat. Previously, SMS group provided many equipment items for the Hoa Phat Dung Quat Iron and Steel Complex project, Hoa Phat Hai Duong Iron and Steel Complex.

Hoa Phat Group is the largest steel producer in Vietnam and Southeast Asia. From the end of 2025, the Group's steel design capacity will reach 15 million tons/year, focusing mainly on hot-rolled steel and high-quality steel for the mechanical engineering industry. Hoa Phat holds the No. 1 market share in the domestic market and has exported many different types of steel to 40 countries and territories.

Phan Trang

Source: https://baochinhphu.vn/hoa-phat-xuat-xuong-thep-ray-cho-duong-sat-cao-toc-ngay-dau-nam-2027-102250529122755798.htm