HANOI – Due to the rising demand for medical oxygen for Covid treatment, Hoa Phat Group has announced that it is reducing the oxygen volume for steel production to ramp up its supply of medical oxygen from January to March.
This plan is aimed at sharing the difficulties of the health sector and following the Industry and Trade Ministry’s call to enhance medical oxygen production and supply for Covid treatment.
During the period of reducing oxygen for steel production, the group will be increasing the consumption of pulverized coal and foundry coke to not affect its steel production target.
Due to its change, the group’s production cost is expected to increase some VND40 billion in the first quarter of 2022.
Hoa Phat Group has two iron and steel production complexes using blast furnace technology and an oxygen blowing furnace in Hai Duong and Quang Ngai provinces.
The Hoa Phat Dung Quat Steel Integrated Complex uses about 81,000-82,000 cubic nanometers of oxygen per hour to produce steel. To increase the supply of medical oxygen for the health sector, the Hoa Phat Group has reduced the consumption of oxygen to 79,000-80,000 cubic nanometers per hour.
Due to a surge in Covid infections in northern Vietnam, in early 2022, the Ministry of Industry and Trade sent a dispatch to major steelmakers encouraging them to adjust production plans to prioritize oxygen sources for Covid patients.
Twelve oxygen production plants nationwide can supply up to 1,400 tons of oxygen daily, according to Nguyen Van Thanh, head of the Vietnam Chemicals Agency.