Inaugurating Cold-rolling Mill & Building NOF Hoa Sen Technological Line

Hoa Sen Corp. (Lotus Steel) put a US$30-million cold-rolled steel mill in southern Vietnam into operation and broke ground for construction of NOF Hoa Sen technological line on April 4, 2007. High-profile attendants to the ceremony were Mr Mal T. Muana, Indian Ambassador to Vietnam; Mr Litendra Nath Misra, Indian Consul General in Ho Chi Minh City; Mr Nguyen Hoang Son, Chairman of Binh Duong Province People’s Committee; and Mr Pham Chi Cuong, Chairman of Vietnam Steel Association.

 

The Hoa Sen cold-rolled steel mill has annual production capacity of 180,000 tonnes. This project involves US$8 million financed by official development assistance (ODA) from the Indian government, around US$5.3 million from the Vietnam Development Assistance Fund, and the balance sourced from Hoa Sen. This is the second facility of its kind in Vietnam, after the Phu My steel sheet plant. Hoa Sen Corp. expects this plant will meet 18 per cent of national demand once in operation, generating more than VND1,500 billion (US$937.5 million) in sales and some VND50 billion (US$3.12 million) in after-tax profit annually.

 

The NOF Hoa Sen plating technological line will process up to 150,000 tonnes of products a year, costing nearly US$30 million. This plating line is equipped with NOF technology - the world’s most advanced technology. Its main product is well-plated corrugated steel for civil and industrial projects. The line is expected to be in operation by March 2008, generating yearly revenue of VND2,000 billion and a post-tax profit of nearly VND75 billion.

 

On this occasion, Hoa Sen Corp. was awarded the diploma of merit for its “excellent achievements in the business, production and implementation of other tasks in 2006” by the Ministry of Industry. Mr Le Phuoc Vu, Chairman and CEO of Hoa Sen Corp. said: “Hoa Sen Corporation has built its strategy for future sustainable development based on a value-added chain. The inauguration of the cold-rolled steel mill today and the establishment of subsidiary companies like Hoa Sen Construction Materials Joint Stock Company, Hoa Sen Engineering and Construction Joint Stock Company, are clear-cut evidence for our post-WTO strategy. Hoa Sen is striving to become a multi-sector economic group.”