Saturday, September 21 2019

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Hòa Phát invests nearly VNĐ43 trillion on Dung Quất project

Update: July, 30/2019 - 15:06

 

A view of Hòa Phát Dung Quất iron and steel production complex. — Photo courtesy of Hòa Phát

HÀ NỘI — In the first half of 2019, Hòa Phát Group poured nearly VNĐ9.17 trillion (US$393.35 million) into Dung Quất iron and steel production complex, raising total investment in the project to approximately VNĐ42.92 trillion.

The group’s chairman Trần Đình Long said that total initial investment for the project is VNĐ40 trillion of medium-term loans for fixed assets and VNĐ12 trillion for short-term activities.

During the investment process, Hòa Phát applied some new technological achievements, increased investment in environmental protection and purchased European equipment to raise capacity, therefore, its spending on fixed assets increased to VNĐ50 trillion and for working capital of VNĐ15 trillion.

From January to June, Hòa Phát recorded more than VNĐ30.06 trillion of revenue, a year-on-year increase of 10 per cent.

However, the parent company’s after-tax profit decreased by 13 per cent to nearly VNĐ3.84 trillion, fulfilling 58 per cent of the year's target.

According to information from a recent analyst meeting, the price of iron ore is at $125 per tonne, up 80 per cent compared to the beginning of the year. The main reason is due to problems at ore mines in Brazil, causing supply to narrow. This affected the business results of Hòa Phát Group.

However, Long said the company has already purchased raw materials at the old price, recorded on a monthly average, thus limiting the impact of the price increase in the first half of the year.

He said that in the second half of 2019, the situation may be difficult when real estate project procedures are delayed. — VNS

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