COMPLETION CEREMONY OF HAI PHONG STEEL ROLLING MILL PROJECT

A STRATEGIC MILESTONE AFFIRMING POSITION IN VIETNAM'S STEEL INDUSTRY

On June 3, 2025, at Nam Cau Kien Industrial Park, Hoang Lam Ward, Thuy Nguyen City, Vietnam Italy Steel Joint Stock Company (VIS) solemnly held the completion ceremony of a new rolling mill marking an important milestone in the journey of developing and expanding a sustainable industrial production ecosystem in Vietnam.

The ceremony was attended by Chairman - Mr Hideichiro Takashima, President - Mr Yasuyuki Hirotomi, Vice President - Mr Shogo Sakamoto from KYOEI STEEL LTD., along with over 200 guests, including representatives from the Japanese Embassy in Vietnam, Hai Phong People Committee’s Deputy Chairman, local authorities, construction contractors, distributors, agents, financial institutions, and media agencies. This was not only an opportunity to introduce a key metallurgical project but also to reaffirm the strong commitment of KYOEI STEEL LTD. in general and VIS in particular to the goals of a green circular economy and enhanced competitiveness.

A Key Project, A Strategic Step Forward

Previously, VIS operated a rolling mill in Hung Yen Province and a steelmaking plant in Hai Phong. However, due to their separate locations, operational efficiency was compromised. By building a new rolling mill adjacent to the steelmaking plant in Hai Phong, the company established a closed-loop production system from billet making to steel rolling, aimed at enhancing cost competitiveness against rivals.

With a total investment of approximately USD 80 million (equivalent to VND 1,820,400,000,000), once the new plant becomes operational, VIS’s annual steel production capacity will increase from 300,000 tons to 800,000 tons. Including KSVC in the North and VKS in the South, Kyoei Group’s total production capacity in Vietnam will reach 2 million tons/year.

Insights from Leadership

Below are reflections shared by Mr. Hideichiro Takashima – Chairman of KYOEI STEEL LTD., and Mr. Yasuyuki Hirotomi – President, on the expansion journey in Vietnam and future outlook.

Development History in Vietnam

Mr Takashima, Chairman shared:

“Vietnam has always caught our attention due to its development potential. In 1991, I represented my father in a survey delegation from the Osaka Chamber of Commerce, where I proposed to Deputy Prime Minister Phan Van Khai that ‘Kyoei Steel will invest USD 50 million in the steel sector.’ When a country recovers after war and begins development, steel becomes an essential material.”

Overcoming Challenges and Strengthening Competitiveness

Mr Takashima, Chairman shared:

“VIS had a steelmaking plant in the North, but it was difficult to compete with Vietnam's largest steel group, which uses blast furnaces that reduce costs by about USD 50 per ton compared to electric furnaces. To boost competitiveness, we built a rolling mill adjacent to the billet plant to optimize costs.”

Mr Hirotomi, President shared:

“This year marks the 50th anniversary of the end of the Vietnam War. The inauguration of the new rolling mill is the fruit of the seed planted by our founder Koichi Takashima, driven by a desire to contribute to Vietnam’s reconstruction. Mr. Koichi Takashima’s dream has come true in the North.

VIS once suffered losses due to fierce competition and the impact of COVID-19. To overcome this, we restructured, cut 100 employees, and enhanced operational guidance from headquarters. As a result, VIS is now the most cost-efficient plant in the Group.”

Competing Through Technology and Production Optimization

With a designed capacity of up to 500,000 tons/year, the plant is equipped with a state-of-the-art Danieli production line, optimizing the production process and reducing energy consumption and emissions.

Mr Hirotomi, President stated:

“The new rolling mill uses equipment from Danieli (Italy) – a first for Kyoei. Its advantage is a rolling speed of over 40m/s. Once operational, there’s no need to transport billets or reheat them, saving USD 20–25 per ton. With our current production capacity, quality, and cost, we believe we can strongly compete with all other steel producers.”

Mr Takashima, Chairman shared:

“The new plant will focus on standard-size products, while the Hung Yen facility will handle smaller sizes. This division improves efficiency. VIS also has an LF furnace to adjust composition, which an IF furnace cannot do. As demand for high-quality steel increases, VIS will hold a strong advantage.”

Driving Industrial and Local Development

Speaking at the event, Mr Hirotomi, President emphasized:

“Although the new plant's capacity is 500,000 tons/year, we will start with 100,000 tons in the first year to ensure efficient operations. Next year, we aim for 500,000 tons, and possibly 600,000 tons if performance is good. Everything depends on the stable operation of the high-speed rolling line.”

Beyond economic significance, the plant will generate job opportunities for local workers and serve as a development anchor for supporting industries and the construction material supply chain both regionally and nationally.

“This project brings three major benefits: (1) employing local contractor Coteccons to ensure schedule and budget; (2) enhancing Vietnam–Japan staff cooperation; (3) enabling young Japanese engineers to gain valuable hands-on experience. This lays the foundation for future upgrades of older plants in Japan.”

A Sustainable Future from a Strong Foundation

The inauguration not only marks the completion of a large-scale industrial project but also reflects KYOEI STEEL LTD.’s long-term vision and ambition to elevate VIS into a leading steel manufacturer in the region, contributing to aligning Vietnam’s industry with global standards.

Amid the formal and celebratory atmosphere, belief in the success of the Hai Phong Rolling Mill project resonated strongly – heralding a new development chapter where technology, people, and vision progress together toward a modern, sustainable, and internationally integrated Vietnamese industry.