HPG expansion to make it Vietnam's biggest steel producer

Leading steel producer Hoa Phat Group (HOSE:HPG) plans to expand its capacity to become Vietnam’s biggest steel firm within the next two years.

After construction on the third phase of its VND3 trillion ($142.2 million) integrated steel complex is completed in the next year-and-a-half, HPG’s annual capacity will rise to two million tonnes from the current 1.15 million tonnes, enabling the firm to surpass Pomina (HOSE:POM), which has a current capacity of 1.6 million tonnes.

HPG earned net profit of VND1.874 trillion ($88.8 million) in the first half of 2014 on revenues of VND13.339 trillion ($632.2 million), up 85 per cent and 60 per cent on-year. Its sales in the period were 445,000 tonnes, up 37.74 per cent.

Also in the first half, HPG led the domestic steel market with 18 per cent market share, and started exporting its product to many countries in ASEAN. In June it became the first Vietnamese steel producer to supply steel products to Australia.

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