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Recently, HoaPat Group in Vietnam GL-E steel signed an agreement with SMS Group in Germany, which will be responsible for the design, supply, and installation of steel rails and special steel production lines, with an annual production capacity of 700000 tons. It is reported that the project is expected to be completed within 20 months, and the first batch of high-speed railway products is expected to be offline in the first quarter of 2027.
The new factory of Hefa Group GL-E steel is located within the Rongju 2 steel production complex in central China, adjacent to the middle section of the north-south high-speed railway (Da Nang Nha Trang). Through the integration of "raw materials rolling distribution", the logistics radius is shortened to within 150 kilometers. It is reported that the steel production plant for railway infrastructure plans to invest 14 trillion Vietnamese dong (541 million US dollars)
This move will further compensate for the shortcomings of Vietnam's domestic production of rail steel that meets the requirements, including special steel that other Vietnamese enterprises are currently unable to produce, such as steel for urban rail transit systems, crane rails, high-speed railway tracks, as well as U-shaped, I-shaped, H-shaped, and V-shaped beams, mainly supplying national strategic infrastructure projects such as the North South high-speed railway in Vietnam, and targeting the international export market.
This is also a response to the Vietnamese GL-E steel Prime Minister's call for the production of steel rails in September last year. In the 100 billion yuan supply chain of the North South high-speed railway, Hefa Group undertakes the breakthrough task of the "bottleneck" link. As the North South high-speed railway project in Vietnam enters the preparatory stage, local Vietnamese enterprises are intensively laying out related industrial chains. After VinGroup and Thaco Group successively proposed high-speed rail investment plans, the rail material production project of Hefa Group has become an important breakthrough in the upstream supporting infrastructure.
