Hoa Phat Group to Produce Steel Rails for High-speed Railways with SMS Group

Hoa Phat Group & SMS Group partners to build high-speed rail products
Core elements of the project will be manufactured in Germany, with strict quality compliance
Through this collaboration, Hoa Phat has become the first Southeast Asia’s only company to produce steel rails for high-speed railways.

Vietnam’s top steelmaker Hoa Phat Group partnered with Germany’s SMS Group on Thursday. In this partnership, the SMS group will be assisting Vietnam’s company with production lines and technology. These production lines will be for manufacturing steel rails and shaped tools. According to the agreement, Hoa Phat Group will be manufacturing an annual capacity of 700,000 tons of steel rails.

The German company will be responsible for designing, supplying and installing the production line Hoa Phat’s steel rails and specialty steels. This project will also be utilizing a four-roll rolling system, making this one of Europe’s most advanced production lines. All core elements utilized in the manufacturing will be manufactured in Germany, under strict quality compliance. This German technology incorporated in manufacturing will provide more flexibility, quality, and precision.

SMS will be utilizing technologies that have been adopted by the top 90 percent of global high-speed rail manufacturers. The newly manufactured steel rail will meet the standards of Europe, Japan and China, making Hoa Phat to be the only capable company in Southeast Asia to produce steel rails for high-speed railways.

Hoa Phat will be utilizing its industry experience to leverage integrated steel production from low-impurity iron ores. This move from the company not only supports sustainability but also helps in the production of rails up to 100 meters in length, which will be effective in achieving straightness, flatness, and surface hardness.

Chairman of Hoa Phat, Tran Dinh Long said, “When we consider suppliers, we prioritize seeing their work on the ground- what countries they’ve served and the quality of their projects. We chose SMS Group after studying large-scale developments in countries like France, Spain, and Chain.”

This new collaboration can open opportunities for Hoa Phat to emerge as a global supplier of steel rail manufacturing.