40 SANY Drilling Rigs Drive Hoa Phat’s Vietnam Steel Megaproject

A Strategic Partnership in Southeast Asia’s Industrial Boom

In the heart of Quang Ngai Province, Vietnam, a monumental construction effort is underway, setting the stage for a significant leap in Southeast Asia’s industrial capacity. The Hoa Phat Dung Quat Iron and Steel Production Complex, a project spearheaded by Vietnam’s industrial titan, Hoa Phat Group (HPG), is witnessing an extraordinary display of engineering and logistical prowess. At the forefront of this massive undertaking are nearly 40 state-of-the-art SANY drilling rigs, whose relentless operation is critical to meeting the project’s ambitious timeline.

This collaboration between a leading global machinery manufacturer and Southeast Asia’s largest steel producer highlights a shared commitment to progress, efficiency, and infrastructural development on a grand scale. The deployment of these machines is not merely a transaction but a testament to the trust placed in SANY’s technology to overcome formidable geological and scheduling challenges.

Hoa Phat Group, with a formidable market capitalization of US$11 billion and ranking 15th among the world’s top 30 largest steel companies, is executing the second phase of its Dung Quat complex. This expansion is a strategic move designed to catapult the facility’s total annual production capacity to an impressive 11 million tonnes once it becomes operational in 2024. Such a scale necessitates a construction phase of equal magnitude and precision.

The project’s foundation work, particularly the piling and drilling operations, forms the bedrock of the entire expansion. Recognizing the critical need for reliable, high-performance equipment capable of working against a tight schedule, Hoa Phat turned to a fleet of SANY drilling rigs, a decision driven by their proven operational superiority and the manufacturer’s ability to ensure timely delivery against all odds.

A fleet of SANY drilling rigs operates at the expansive Hoa Phat Dung Quat construction site in Quang Ngai Province.

Meeting Unprecedented Demand: Why SANY Drilling Rigs Were Chosen

The scale of the Hoa Phat Phase 2 project presented a unique set of demands. Project planners estimated a minimum requirement of 50 drilling rigs to maintain the aggressive construction pace necessary to meet the 2024 deadline. In a highly competitive procurement process, SANY secured the contract for 40 of these vital machines. The primary factors influencing this decision were twofold: demonstrably better on-site performance and a significantly shorter lead time for delivery. While other manufacturers struggled with production and logistics timelines, SANY’s streamlined supply chain and manufacturing efficiency ensured that the required SANY drilling rigs arrived on site as promised.

This logistical triumph was achieved despite the severe global and local disruptions caused by the COVID-19 pandemic. Port closures, road lockdowns, and international shipping delays created bottlenecks for many industries. However, SANY’s robust logistics network and proactive planning prevented any delivery delays for the Hoa Phat project. The reliable arrival of the equipment allowed construction to commence without postponement, a critical factor in maintaining the overall project schedule and budget. This reliability under pressure solidified Hoa Phat’s confidence in SANY not just as an equipment supplier, but as a dependable partner in their mission-critical expansion.

The performance criterion was equally decisive. Preliminary assessments and past project data indicated that SANY’s drilling rigs offered superior operational metrics compared to other available options. This included faster cycle times, greater fuel efficiency, and enhanced durability—all of which translate directly into lower operating costs and higher daily progress on site. For a project of this duration and cost, the long-term value provided by reliable and efficient SANY drilling rigs outweighed other considerations, making them the rational and strategic choice for the majority of the fleet.

Conquering the Geological Challenge: Basalt and Bluestone at 130 MPa

The Quang Ngai site is not a forgiving one. The local geology is dominated by dense, hard rock formations, primarily basalt and bluestone, with compressive strength readings reaching up to 130 Megapascals (MPa). To put this in perspective, concrete used in high-rise buildings typically has a strength of 20-40 MPa. Drilling through such resilient material requires machinery of exceptional power, robustness, and specialized tooling. Ordinary drilling rigs would struggle with penetration rates, experience excessive wear on components, and risk frequent breakdowns, leading to costly downtime.

This is where the engineered superiority of the deployed SANY drilling rigs became unequivocally apparent. SANY configured its rigs specifically for this harsh environment. They were equipped with high-penetration, wear-resistant drill bits designed to fracture and cut through the tough basalt matrix effectively. More importantly, these SANY drilling rigs boast the maximum torque output in their class among competitor products. High torque is essential for maintaining rotational force at the drill bit when encountering extreme resistance, preventing the machine from stalling and ensuring continuous progress.

The result is a drilling speed that defies the challenging conditions. The SANY fleet achieves a consistent drilling speed of approximately 80 centimeters per hour in this 130 MPa rock. Furthermore, the SANY drilling rigs are capable of intact removal of drill cores at a maximum diameter of 1,500 mm (1.5 meters), which is crucial for large-diameter pile foundations required to support the immense structures of a steel production complex. This combination of speed, power, and precision in core recovery provides Hoa Phat with the “best solution available,” ensuring the foundation work is not only completed on schedule but also to the highest quality standards necessary for long-term structural integrity.

A SANY drilling rig expertly handles the demanding basalt rock formations at the Hoa Phat Dung Quat site.

Technical Edge: The Engineering Behind SANY Drilling Rigs’ Performance

The outstanding performance of the SANY drilling rigs at the Hoa Phat site is no accident; it is the result of deliberate and advanced engineering focused on the core needs of modern large-scale construction. At the heart of these machines is a powertrain optimized for high-torque, low-speed operation, which is ideal for drilling applications. The hydraulic systems are engineered for precise control and immense power delivery, allowing operators to adjust drilling parameters on the fly to match changing ground conditions without losing efficiency.

The structural design of SANY drilling rigs emphasizes durability and stability. The mast, base, and drilling mechanisms are constructed from high-strength steel and are subjected to rigorous finite element analysis during the design phase to ensure they can withstand the intense stresses of continuous operation in hard rock. This robust construction minimizes vibration and deflection during drilling, which contributes to both the accuracy of the borehole and the longevity of the machine’s components. Furthermore, the ergonomic cabin design and intuitive control interfaces reduce operator fatigue, enabling longer, more productive shifts with a lower risk of error.

Another key advantage is the modularity and serviceability built into SANY’s design philosophy. Common maintenance points are easily accessible, and the use of centralized lubrication systems for critical joints reduces daily servicing time. This focus on ease of maintenance is a significant contributor to the high machine availability rates observed on site. When a fleet of 40 SANY drilling rigs must operate in unison, minimizing downtime for each unit has a compound positive effect on the project’s overall progress, a factor that Hoa Phat’s project managers deeply appreciate.

Performance Parameters: SANY Drilling Rigs at Hoa Phat Dung Quat Project

Conclusion: A Foundation for the Future, Built by Reliable Partnership

The ongoing symphony of nearly 40 SANY drilling rigs at the Hoa Phat Dung Quat complex is more than just construction noise; it is the sound of progress being meticulously forged. This collaboration between a Vietnamese industrial leader and a global machinery powerhouse exemplifies how strategic partnerships can turn ambitious blueprints into tangible reality. SANY has not merely supplied equipment; it has delivered reliability, performance, and logistical certainty under the most testing global and local circumstances.

The project validates SANY’s position as a manufacturer capable of supporting the world’s most significant infrastructure endeavors. By conquering the 130 MPa basalt, meeting a relentless schedule, and providing unwavering operational support, these drilling rigs are laying a literal and figurative foundation for Southeast Asia’s industrial future. As the Hoa Phat steel complex rises towards its 2024 completion, the role played by the dependable fleet of SANY drilling rigs will be remembered as a critical chapter in its story of success. For the global construction and mining sectors, this project stands as a compelling case study in choosing a partner whose technology and commitment are as solid as the rock it is designed to break.

Project Highlights at a Glance

© 2025 SANY Heavy Industry Co., Ltd. All rights reserved. | Engineering a Smarter, Stronger Future.