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Hoa Phat sees profit up 89 per cent in 2016

Released at: 08:00, 05/02/2017

Hoa Phat sees profit up 89 per cent in 2016

Photo: Duc Anh

Last year the Hoa Phat Group soared and reached its highest post-tax profit ever since its foundation.

by Hong Nhung

Vietnam’s steel giant Hoa Phat Group (coded: HPG) has announced its revenue for 2016 at $1.5 billion and profit after tax at about $292 million. Those figures show an increase of 34 per cent and 89 per cent compared to the previous year. This is the highest profit and revenue Hoa Phat has ever seen since its foundation.

This is the first time that the company has reached the leading position in the domestic market share of construction steel consumption. It had a total output of 1.8 million tons per year. Consuming nearly 500,000 tons of different kinds of steel pipe, Hoa Phat continues to lead in consumption volume, accounting for 26 per cent of the market share in the country.

In the real estate sector, apart from Pho Noi A Industrial Park in the Hung Yen province and Hoa Mac Industrial Park (IP) in Ha Nam province, Hoa Phat is going to construct two big projects in 2017 including Yen My IP covering 200 ha and Pho Noi New Urban Area covering 260 ha in Hung Yen province. Those projects will significantly contribute to meet the very high demand on housing for residents in industrial zones and the areas surrounding Hanoi.

For the agricultural sector, Hoa Phat said its array of animal feed production has already been put into operation and has been preparing to complete its second factory in Long Khanh IZ in Dong Nai province. It will have a capacity of 300,000 tons per year.

Hoa Phat this year continues to implement construction of its third plant, with a similar capacity, in Phu Tho province to serve the northwestern region.

In recent news, the government has agreed on the investment policy of Hoa Phat’s iron and steel complex in Dung Quat EC in Quang Ngai province.

For a long time now the Hoa Phat Group has been seeking permission from local authorities to take over the the Guang Lian Dung Quat steel mill project in Quang Ngai province, which has been delayed for ten years.

The Hoa Phat Group plans to build a $3 billion iron and steel complex at the Dung Quat Economic Zone (EC) with a capacity of 4 million tons a year which will be divided into two phases and have an operational duration of 70 years.

In early September, the Quang Ngai People’s Committee decided to revoke 337 hectares of land from the Guang Lian Dung Quat steel factory, due to its long delay in construction and for violating the Land Law.

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