Vietnam’s conglomerate Hoa Phat Group (HoSE: HPG) on Saturday inaugurated a new steel pipe plant in the southern province of Tay Ninh with an investment of VND2 trillion ($75.6 million), as the country’s top steelmaker expands capacity to capture recovering demand in construction and infrastructure.

The facility has an annual capacity of 400,000 tons and produces a range of products, including black steel pipes, galvanized steel, and large-diameter pipes for industrial use.

With the addition, Hoa Phat’s total steel pipe capacity rises to 1.2 million tons per year, reinforcing its leading position in the domestic market with an estimated market share of nearly 35%.

Inside Hoa Phat's steel pipe plant in Tay Ninh province, southern Vietnam. Photo courtesy of HPG.

Located in the Thuan Dao Industrial Park, the 15-hectare plant benefits from proximity to Ho Chi Minh City and is about 30 km from Long An international port, allowing the company to optimize logistics costs and expand its reach in southern Vietnam and export markets.

The plant is already supplying steel pipes for major infrastructure projects such as Long Thanh International Airport in Dong Nai province and Phu Quoc airport off An Giang province, the company said.

In addition, the facility is equipped with a rooftop solar power system with a capacity of 10 MW, enabling the firm to meet more than half of its electricity demand and reduce operating costs.

In the first quarter of 2026, the group sold more than 241,000 tons of steel pipes, up around 30% from a year earlier. Southern Vietnam accounted for roughly 90,000 tons.

The company targets revenue of VND210 trillion ($7.97 billion) and net profit of VND22 trillion ($835.47 million) this year, up 33% and 42% respectively from 2025. If achieved, this would mark a record high for the group, with steel continuing to contribute about 95% of total revenue.

HPG shares were traded at VND24,800 ($0.94) each on Monday afternoon.