Steelmaker Hoa Phat Group (HPG) has officially launched a new subsidiary, which will produce fodder in the northern province of Hung Yen. HPG Vice General Director Nguyen Viet Thang has been appointed as the Hoa Phat Fodder Production and Trading Ltd. Co.'s director and other officials of the group have also been selected for key positions in the company, which will operate with the charter capital of VND300 billion(US$14.08 million).
According to the group's representative, with a design capacity for 300,000 tonnes of fodder, the company is estimated to report revenue of VND3 trillion ($140.8 million) during the next three years.
The representative said steel making is the core business of the group, adding that entering manufacturing in the agriculture industry will be the long-term strategy of the group's development. Thus, HPG will set a priority in finance and human resources for the new field.
HPG Chairman Tran Dinh Long said even though the competition in the agriculture industry is hard, he believed the group will be successful.
The first batch of fodder is expected to be dispatched to the local market in June 2015, while the company's fodder factory is set become operational in 2016.
Last year, HPG reported a net revenue of VND26 trillion ($1.22 billion) and an after-tax profit of VND3.2 trillion ($150.2 million), reflecting a 62 per cent year-on-year growth