On August 5, 2025, the oxygen steelmaking furnace (BOF) No. 2 and the RH vacuum refining furnace of the Hoa Phat Dung Quat 2 Integrated Steel Production Project (hereinafter referred to as Dung Quat 2) were officially put into operation.
With these two furnaces, the Hoa Phat Group is capable of producing high-quality steel that meets the most stringent global standards.
Hot-rolled coil (HRC) steel offers superior strength and ductility, making it ideal for demanding industries such as automotive, construction, and shipbuilding. Its exceptional quality commands a higher price compared to cold-rolled or conventional steel. Image source: Steelradar
The operation of the BOF and RH furnaces marks a significant step forward, paving the way for the second blast furnace to become operational and aiming for the completion of the entire Dung Quat 2 project – with a total investment of 85 trillion VND – in September 2025.
Once completed, the Dung Quat 2 “steel powerhouse” will contribute to Hoa Phat Group’s total crude steel production capacity of 14.5 million tons per year, including 8.6 million tons of hot-rolled coil (HRC) steel – a type of steel that meets the stringent standards of the international market.
A German “Treasure”
Both the BOF and RH furnaces were supplied to Vietnam by the global metal industry giant SMS Group (Germany)
Image source: SMS Group
With a history spanning over 150 years and a mission to turn metals into green metals, promote climate-neutral and sustainable metal production, SMS Group was trusted by the Hoa Phat Group to design, manufacture, and supply the BOF and RH furnaces for the Dung Quat 2 project.
SMS Group’s mission aligns with Hoa Phat Group’s sustainable development journey at the Dung Quat 2 project, as the Vietnamese conglomerate is investing beyond current environmental standards, focusing on reducing CO2 emissions and optimizing energy usage.
Speaking of energy optimization, reducing CO2 emissions, and increasing capacity, SMS Group’s BOF furnace is highly regarded.
The BOF furnace is expected to have a capacity of 300 tons per heat, achieving a daily production of 9,000 tons, and producing liquid steel with an extremely low impurity content.
How Environmentally Friendly is the BOF Furnace?
Currently, the world’s 8 billion people “consume” about 1.8 billion tons of steel per year. This figure equates to approximately 222 kg of steel per person per year. The United Nations predicts that the global population will reach nearly 10 billion by 2050. With the current per capita steel consumption rate, the annual steel demand will reach about 2.2 billion tons.
So, how can we produce more steel while reducing CO2 emissions?
The answer lies in green steelmaking. One of the solutions for greener steel lies in steelmaking technologies. BOF is one such technology.
Transporting iron ore. Image source: Getty Images/John W. Banagan
The BOF furnace is a modern steelmaking furnace that operates by injecting oxygen into molten iron to produce high-quality, clean steel in a short time.
The BOF developed by SMS Group utilizes a calculation model for mass, energy, and oxygen balance as a core tool to optimize the steelmaking process. This model enables the BOF to achieve a more efficient process, less reliance on carbon, and compliance with stringent environmental standards.
Specifically:
– Reduced coke usage: Optimized raw material ratios result in lower coke consumption (200 kg/ton of hot metal), reducing CO2 emissions from the ore reduction process.
– Waste gas reutilization: The Blue Blast Furnace technology uses syngas (produced from furnace off-gas) instead of coke, reducing CO2 emissions by up to 28%.
– Hydrogen transition: Using hydrogen instead of natural gas in the EASyMelt technology (developed by SMS) combined with carbon capture can reduce CO2 emissions by over 60%.
– Increased efficiency: Reduced oxygen blowing time prevents waste, saves energy, and indirectly lowers CO2 emissions.
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Hòa Phát Approved for $146 Million Investment Boost for Hòa Phát Dung Quất 2, Increasing Annual Capacity by 500,000 Tons
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