A view of Hoa Phat Dung Quat iron and steel production complex (Photo courtesy of Hoa Phat)Hanoi (VNS/VNA) - In the first half of 2019, Hoa Phat Group pourednearly 9.17 trillion VND (393.35 million USD) into Dung Quat iron and steelproduction complex, raising total investment in the project to approximately42.92 trillion VND.
The group’s chairman Tran Dinh Long saidthat total initial investment for the project is 40 trillion VND of medium-termloans for fixed assets and 12 trillion VND for short-term activities.
During the investment process, Hoa Phatapplied some new technological achievements, increased investment inenvironmental protection and purchased European equipment to raise capacity,therefore, its spending on fixed assets increased to 50 trillion VND and forworking capital of 15 trillion VND.
From January to June, Hoa Phat recordedmore than 30.06 trillion VND of revenue, a year-on-year increase of 10 percent.
However, the parent company’s after-taxprofit decreased by 13 percent to nearly 3.84 trillion VND, fulfilling 58 percentof the year's target.
According to information from a recentanalyst meeting, the price of iron ore is at 125 USD per tonne, up 80 percentcompared to the beginning of the year. The main reason is due to problems atore mines in Brazil, causing supply to narrow. This affected the businessresults of Hoa Phat Group.
However, Long said the company has alreadypurchased raw materials at the old price, recorded on a monthly average, thuslimiting 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/VNA
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