Conglomerate announces intention to establish agricultural company.
The Hoa Phat Group (HPG) has approved a plan to establish an agricultural company with charter capital of VND300 billion ($14.3 million).
It released Resolution No. 01/2015 on establishing the company, in fields such as breeding, food processing and animal feed processing. The name of company is expected to be the Hoa Phat Trade and Production of Feed Co., with 100 per cent capital from HPG, and it will be located at the Pho Noi A Industrial Zone in northern Hung Yen province.
Mr. Tran Tuan Duong has been authorized to be the representative managing capital at the new company and Mr. Nguyen Viet Thang will be director and legal representative.
With charter capital of VND300 billion ($14.3 million), the company will focus on breeding pigs and poultry, husbandry services, meat processing and preserving, production of animal feed, poultry and seafood, the production of fertilizers and nitrogen compounds, machinery wholesaling, and producing equipment and spare parts for agriculture and other support industries.
HPG is one of the largest conglomerates in Vietnam and led by Mr. Tran Dinh Long, Chairman of the Board. Starting as a company selling all types of construction machinery in 1992, Hoa Phat has gradually expanded into other the fields such as steel pipes, steel, refrigeration, and real estate.
In 2014 steel was the main businesses of HPG, bringing in 77 per cent of total revenue. The group sold more than 1 million tons, an increase of 43 per cent compared with 2013. In 2015 HPG is moving towards its next big step, in the agricultural sector.