Hòa Phát invests nearly VNĐ43 trillion on Dung Quất project
HÀ NỘI — In the first half of 二0 一 九, Hòa Phát Group poured nearly VNĐ 九. 一 七 trillion (US$ 三 九 三. 三 五 million) into Dung Quất iron and steel production complex, raising total investment in the project to approximately VNĐ 四 二. 九 二 trillion.
The group’s chairman Trần Đình Long said that total initial investment for the project is VNĐ 四0 trillion of medium-term loans for fixed assets and VNĐ 一 二 trillion for short-term activities.
During the investment process, Hòa Phát applied some new technological achievements, increased investment in environmental protection and purchased European equipment to raise capacity, therefore, its spending on fixed assets increased to VNĐ 五0 trillion and for working capital of VNĐ 一 五 trillion.
From January to June, Hòa Phát recorded more than VNĐ 三0.0 六 trillion of revenue, a year-on-year increase of 一0 per cent.
However, the parent company’s after-tax profit decreased by 一 三 per cent to nearly VNĐ 三. 八 四 trillion, fulfilling 五 八 per cent of the year's target.
According to information from a recent analyst meeting, the price of iron ore is at $ 一 二 五 per tonne, up 八0 per cent compared to the beginning of the year. The main reason is due to problems at ore mines in Brazil, causing supply to narrow. This affected the business results of Hòa Phát Group.
However, Long said the company has already purchased raw materials at the old price, recorded on a monthly average, thus limiting the impact of the price increase in the first half of the year.
He said that in the second half of 二0 一 九, the situation may be difficult when real estate project procedures are delayed. — VNS
