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East Asia Steel expands to meet needs

Released at: 10:54, 21/04/2016 What's on

East Asia Steel expands to meet needs

Corporation's production expansion part of long-term sustainable development strategy.

It’s been no simple stroke of luck that the Ton Dong A (East Asia Steel) Corporation has established a firm footing and made steady progress against intense competition in the marketplace - it’s been all about its long-term outlook and strategies for sustainable growth.

According to its report for the 2015 fiscal year, the company earned total revenue of an estimated VND4.3 trillion ($193 million) and profit of more than VND220 billion ($10 million). It plans to earn revenue of VND5 trillion ($225 million) and profit of VND250 billion ($112 million) in 2016. These may be modest goals, considering the considerable effort being made by its management, office staff and workers.

One of the greatest achievements and biggest steps made by the construction material brand over the years has been the launch of the first stage of its second plant, at the Binh Duong Industrial Park in southern Binh Duong province. Investment of $70 million was made in this first stage, which has a planned capacity of 260,000 tons per year. The main task of the plant is to produce high quality coated steel sheets, of which 40 per cent will be exported to the US, Europe and Southeast Asian countries.

A representative from the East Asia Steel Corporation said that in the second stage the plant will continue to receive additional investment for further improvements and total capacity will be increased to about 800,000 tons per year in the 2017-2018 period.

Apart from having the largest scale and most modern equipment in coated steel sheets in Vietnam and Southeast Asia, another outstanding feature of the plant is the significant support from Enterprise Resource Planning software developed by the US technology company Oracle. This technology helps improve control and management of the company and prevent risks. The East Asia Steel Corporation is the first coated steel sheet company in Vietnam to have successfully made use of the technology in its business management.

To be able to make great strides forward in reaching its goal of revenues of VND10 trillion ($450 million) by the late 2020s, the company must have a strategic outlook, with the company leadership playing a decisive role.

Mr. Nguyen Thanh Trung, Chairman and General Director of the East Asia Steel Corporation, told VET that the construction and operation of the second plant is one step in adopting the company’s longstanding strategies.

The construction of the second plant to modern international standards was not done overnight. “It took us several years to prepare plans with orientations and estimates,” Mr. Trung said. “We began to conduct research on the project in 2007 and made it known to the public in 2009. In 2010 we started work on the different modules of the project, such as looking for pieces of land, making plans to raise funds, getting to know the necessary technology, and predicting sales. When we had made basic preparations, in early 2013, we began the construction work.”

As company leader Mr. Trung said that the East Asia Steel Corporation did not want to continue to use outdated technology and produce low quality iron sheets. Instead, it has had to continually improve its technology with a broad, long-term outlook. When beginning the construction of the second plant the Corporation took into account different issues such as market needs, competition and financial risks. Socioeconomic development has always required companies to make better products. Although manufacturing plants in Vietnam are now, by comparison, not much better than those of a few years ago, there will be major differences in the type of products and their quality.

Vietnam’s further integration into the regional and global communities, via ASEAN and the TPP, will certainly pave the way for opportunities as well as competitive challenges, he added. Companies must seize the advantages and make the best use of their strengths to promote the sustainable growth of their business. The East Asia Steel Corporation is confident that it will be a pioneer in supplying high quality iron and steel sheets over the next few years.

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