Vietnamese steel giant to build $180 million plant amid global surplus dispute

• Global steel crisis: Vietnam imposes higher tarrif while U.S. leads calls to end China's excess supply

The company explained that Vietnam uses about 2.5 to 2.8 million tons of steel sheet every year. However, most steel factories are located in the south while only one factory is located in the north, with an average annual output of 50,000 tons.

The new factory will be constructed in the northern province of Hung Yen, producing about 400,000 tons of steel sheet for another HPG plant as well as the domestic market.

The company is going to launch the project in May and expects it be completed by the beginning of 2018. HPG added they had raised the money for the project with VND2 trillion invested in fixed assets.

The Vietnam Steel Associsation said that last year, Hoa Phat was the second largest domestic producer of construction steel, accounting for 21.3 percent of the market. In term of steel pipes, Hoa Phat was the largest producer with 359,000 tons, equivalent to 23.2 percent of the market.

Hoa Phat Group was ranked the fifth largest private company in Vietnam in 2015. Starting as a trading company specializing in construction machinery in 1992, Hoa Phat has expanded into the fields of furniture, steel, refrigeration and real estate.