Vietnamese steelmaker Hoa Phat invests over $22mn in offshore wind

The investment, announced this month, marks Hoa Phat’s entry into offshore wind and solar power generation.

The move follows a restructuring of the steelmaker’s business portfolio, which now includes electricity transmission, distribution, financial services, automotive trading, furniture production, and IT infrastructure.

Steel manufacturing remains its core business.

An industry expert said that steel production requires massive electricity consumption, with energy costs directly affecting competitiveness.

Hoa Phat’s participation in offshore wind is seen as part of its broader strategy to secure energy supplies and reduce reliance on external sources, the expert added.

In the first half of last year, Hoa Phat’s plants in Dung Quat and Hai Duong generated more than 1.8 billion kWh, meeting about 90 percent of their steel production needs, valued at nearly VND3.5 trillion ($133 million).

This electricity was mainly produced from heat and gas by-products of steelmaking, but output depends on integrated plant operations.

By investing in wind power, Hoa Phat is diversifying into clean energy, potentially lowering costs and meeting emission reduction requirements in steel production.

Last month, its subsidiary Hoa Phat Dung Quat successfully produced high-strength structural steel S700MC to European standards, becoming the first Vietnamese company to manufacture the product.

With a minimum yield strength of 700 MPa, the steel is used in heavy-duty vehicle frames, construction machinery, and lifting equipment, reducing reliance on imports.

In 2026, Hoa Phat aims to increase steel output by 40 percent.

Vietnam produced 8.5 million metric tons of crude steel in the first four months of this year, up 8.4 percent versus the same period last year, placing the country among the world’s top 10 producers.