On April 22, 2022, General Meeting of Shareholders of Nam Kim Steel approving plans with revenues of 28,000 billion VND, post-tax profits of 1,600 billion VND, and the investment in a new factory with a capacity of 1.2 million tons per year, totaling capital of 4,500 billion VND.
“2021 A Successful Year for the Industry”
Looking back at 2021, Chairman Ho Minh Quang stated that it was a successful year for the steel industry in general and for NKG specifically, despite supply chain disruptions. This set the stage for Nam Kim to execute development plans for the future. Chairman Ho Minh Quang also emphasized that 2021 was a successful year for the industry: “From late 2020 to mid-2021, the global pandemic caused many steel producers worldwide to halt blast furnace operations. Resuming operations takes time. High demand with insufficient supply caused steel prices to soar.
“Domestically, due to the severe pandemic in the Southern region, galvanized steel companies increased exports to compensate for reduced domestic consumption. Consequently, domestic galvanized steel consumption dropped by 13% in 2021, while exports surged by 108%,” he said.
Regarding steel pipes, NKG leadership noted it’s a large, and growing market. Due to raw material shortages, last year’s production was merely maintained. However, in the second quarter of this year, NKG will clear inventory to boost raw material galvanization capacity, planning to increase steel pipe production.
In 2021, NKG significantly exceeded its plan with revenues exceeding 28,000 billion VND, and post-tax profits reaching 2,225 billion VND. Accordingly, the company decided to distribute dividends at a rate of 30%, including 10% in cash (to be executed in 2022 upon approval from the State Securities Commission), and 20% in stock. Correspondingly, NKG will issue nearly 44 million additional shares, increasing its charter capital post-dividend to 2,633 billion VND.
Investment in a new factory with a capacity of 1.2 million tons per year, totaling 4,500 billion VND
The company also approved the establishment of a subsidiary, and investment in a new factory. Specifically, NKG will establish Nam Kim Phu My Steel Co., Ltd., with a charter capital of 500 billion VND, of which Nam Kim Steel Joint Stock Company will contribute 100%. This company will be the investor of the Nam Kim Phu My Steel Plant with a capacity of 1.2 million tons per year, and total investment of 4,500 billion VND. The plant’s products will include cold-rolled steel, galvanized steel coil, zinc-aluminum coated steel, aluminum-zinc coated steel, steel pipes, and steel boxes.
The Board of Directors also nominated Mr. Vo Hoang Vu as the Director and Legal Representative of Nam Kim Phu My Steel Co., Ltd., overseeing all capital contributions of Nam Kim in this subsidiary.
Currently, NKG operates 3 plants with a total designed capacity of 1 million tons per year, specializing in cold-rolled steel, color-coated steel, galvanized steel, and steel pipes. Upon completion of the new factory, the system’s total capacity will increase by 2.2 times to 2.2 million tons per year.
This year, NKG will commence operations at a centralized warehouse for the domestic market, and a welded steel pipe plant on a 5-hectare site in Binh Duong. “This investment will relocate some support activities, logistics, and steel pipe production out of the galvanized steel plant, expanding space for manufacturing operations, circulation of semi-finished and finished products within the plant,” a representative said.
In parallel, the company continues to research new high-quality products. Additionally, it diversifies its export items, focusing on markets in Europe, North America, and Australia.
