Ton Nam Kim Promotes Product R&D, Speeding Up With Positive Indicators after Covid-19

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The 19 Covid pandemics made the whole economy is stormy. In such circumstances, many domestic manufacturing enterprises must find solutions to adapt and recover production. Especially In Construction Materials Manufacturing, Ton Nam Kim Is A Typical Example.

Overview of the coated steel industry in the first quarter of 2020: the output has decreased but still has positive sign

In such situations, the construction material industry also faces many difficulties when the demand for construction slows down. According to VSA (Vietnam Steel Association), if in the first quarter of 2019, the total output of metal plated steel & color coating of the whole industry reached 1,024,372 tons while the first quarter of 2020 just reached 976,262 tons only. It is explained by the rapid increase in the epidemic, causing a decline in export orders and delayed basic construction demand. On the other hand, many delayed export orders also lead to the industry’s output is affected.

Nam Kim Steel

However, according to data analysis and market signals in the upcoming time, realizing the positive points that it will have an opportunity for businesses in the metal-coated and colored coating field. Total sales volume in the first quarter of 2020 reached 844,869 tons, it is not too much lower than 883,160 tons in the first quarter of 2019. The next time, when the economy recovers, the demand for capital construction increases and the export orders are implemented, the output will enormously go up. In particular, Vietnam’s efforts to control and prevent Covid 19,it  will give the domestic manufacturing industries a chance to recover sooner, although the world’s epidemic is still complicated.

Ton Nam Kim actively researches new products, improves market share and business results

2019 is not a good year for Ton Nam Kim. Nam Kim ranked third in the industry on the ranking of market share and output in the first quarter of 2019. In addtion, many declining indexes also caused many doubts about the “top” position of Ton Nam Kim in the market.

However, due to epidemics raging in early 2020 and reducing export orders and delay of delivery time is a favorable condition for businesses to re-organize their resources, focus on R&D high value-added products have been planned before.

One of Ton Nam Kim’s biggest achievements at this time is that in April -2020, the enterprise successfully produced Z600 coated coil. This is a high corrosion resistant steel material solution suitable for projects in specific super corrosive environments such as breeding farms and coastal solar panels, factories in polluted industrial environments.

Nam Kim Steel

According to Mr. Quang Trong Lang – Deputy General Director, Ton Nam Kim is the first domestic coated steel company to successfully produce a continuous line of Z600 coating mass with a base thickness of up to 3 mm. There are only a few reputable manufacturers who produce and supply this product in the world. In addition to domestic demand, the company has also received many international customers’ orders, especially from Australia, so it has researched and cooperated with many technology partners to complete the production process. This product has passed the severe test methods of Quatest 3, SGS according to Australian standard AS 1397.

Besides, Ton Nam Kim also cooperates with partners to develop pre-painted galvalume products of AZ200, high-quality coating with over 30 years warranty.

The achievements in improving the management, R&D of new products, restructuring finance and enhancing customer care efficiency have helped Ton Nam Kim achieve good business results in the first half of 2020, despite the outbreak of the disease. Along with 1st quarter of 2020 results with a net profit of 41 billion VND, Ton Nam Kim’s market share has improved significantly. According to the Vietnam Steel Association report, at the end of the first quarter of 2020, the enterprise’s market share of coated steel products reached 17.5%, there was an improvement compared to 14.7% in 2019 ranked second in the whole industry. The good signs promise a prosperous new journey for this strongly recovering of this giant coated steel producer.

Source:  CafeF  Newspapers:

Nam Kim Steel Joint Stock Company
Lot A1, Đ2 Street, Dong An 2 Industrial Park, Thu Dau Mot City, Binh Duong
T. (+84)274 3748 848 | F. (+84)274 3748 868

Representative office
Room 802, 8th Floor, Ha Do Airport, 02 Hong Ha, Ward 02, Tan Binh District, Ho Chi Minh City
T. (+84)283 6204 829