Hoa Phat Group signed a contract with SMS Group of Germany on May 29 for the supply of technology and production line to manufacture rail steel and structural steel for high-speed railways with a capacity of 700,000 tons per year.

The production line is a key component of Hoa Phat’s rail and structural steel plant project in Dung Quat in central Quang Ngai Province, which has a total investment of VND14 trillion ($536 million).

The production line is expected to be completed within 20 months, with the first high-speed rail track products scheduled for rollout in the first quarter of 2027.

The plant will produce special-use steel products such as rails for urban railways, overhead cranes, and high-speed rail, as well as structural steel types.