2 Thai firms in licensing, investment pacts with VN's Hoa Sen Group
Hoa Sen Group, Vietnam's leading steel sheet and steel pipe manufacturer and trader, recently held the official opening of a fourth galvanising line with a capacity of 120,000 tonnes per year at its Hoa Sen Phu My steel sheet plant.
The group also signed licensing and investment agreements with two Thai companies: Assava Metal (Thailand) and BK Metal Sheet.
The new line, installed on schedule at a cost of US$11 million (Bt322 million), saw the launch of its first product on March 15.
This will increase the group’s production capacity to satisfy domestic customers as well as those in neighbouring Southeast Asian markets, said the Vietnamese bourse-listed company.
In 2008, Hoa Sen started to export its steel products to more than 26 countries worldwide, which overseas shipments reaching nearly 180,000 tonnes last year.
The instalment of the modern line has increased steel capacity utilisation to reflect the company’s confidence in the long-term business opportunities offered in Vietnam and key trading partners, including Thailand.
The group’s confidence in the Kingdom has been boosted by Thai economic and investment growth, as well by as the positive knock-on effects seen in the building and construction markets.
At the launch ceremony, Hoa Sen Group also signed a trademark-licensing agreement with Assava Metal (Thailand), as well as a memorandum of understanding on investment cooperation in building a steel sheet plant in Thailand with Assava Metal and BK Metal Sheet.
Since 2009, these companies have been actively distributing Hoa Sen steel sheet products in Thailand.
Under the terms of the agreements, Hoa Sen Group expects to meet increasing demand for a variety of steel sheet and steel pipe products in Thailand.
Building brand recognition The trademark-licensing deal with Assava Metal (Thailand) marks a new milestone in the enduring cooperation between Hoa Sen Group and Assava Metal in order to increase the present density of Hoa Sen Steel Sheet’s brand name in Thai consumers’ hearts and minds, said the Vietnamese company.
It is also the group’s first step in advancing its strategy of building the brand in the region and all over the world.
Hoa Sen Group sold 453,252 tonnes of steel products last year, from which it generated revenue of $480 million and a net profit of $17.5 million.
The company predicts 541,800 tonnes in sales volume, revenue of $524 million and net earnings of $19 million this year.
Hoa Sen Group, established in 2001, confirmed its committment to business growth while providing Vietnam and the region with the best steel products at competitive prices.
The group consists of three subsidiaries, two plants, one representative office and more than 100 branches across Vietnam.
It manufactures steel and plastic products, including galvalume and galvanised steel sheet, pre-painted galvalume and galvanised steel sheet, square steel pipe and steel pipe, plastic pipe and accessories.
