Diem Pham

On November 26, Ton Nam Kim successfully organized the Customer Conference and Knowledge Sharing Event: Understanding Correctly, Choosing Right Quality, Galvanized Steel Products, and Steel Pipes for LONG-LASTING COATINGS at Muong Thanh Hotel – Ca Mau City. This event provided an opportunity for networking, exchanging knowledge about galvanized steel products, and expressing gratitude to distributors, agents, and customers for their trust, support, and partnership with Ton Nam Kim in the past period.

Attending the conference were Mr. Nguyen Minh Hung – Deputy General Director of Domestic Business, Ms. Pham Thi Hai – Director of Business and Marketing, Mr. Le Minh Hai – Director of R&D, along with the participation of over 200 Valued distributors, Agents, and Customers from across Ca Mau province.

In his speech at the conference, Mr. Nguyen Minh Hung – Deputy General Director of Domestic Business, expressed deep gratitude to the valued distributors, agents, and customers who have trusted, and partnered with Ton Nam Kim. He reaffirmed Ton Nam Kim motto “Quality Thinking, Sustainable Life,” emphasizing that the company strives daily to create products that prioritize quality and ensure durable constructions for consumers. This reflects the company’s commitment to sustainability.

During this conference, Mr. Le Minh Hai – Director of R&D, shared insights on the durable galvanized steel products, and pipes. These products, such as cold plate, demonstrate higher coating levels like AZ85, AZ125, and AZ200 compared to similar products in the current market segment. The galvanized pipes and hollow sections have coatings up to Z100. Cold plate AZ50 features a paint thickness of up to 25 microns with 4 layers of paint, while cold plate AZ150 boasts a paint thickness of 36 microns, backed by a 20-year warranty.

Over nearly 20 years of formation, and development, Ton Nam Kim has become a leading galvanized steel manufacturer in both the Vietnamese, and International markets. Achieving these milestones would not have been possible without the trust, support, and partnership of our valued distributors, agents, and customers, and we look forward to strengthening these relationships even further.

On the evening of November 2, at the National Convention Center in Hanoi, the Announcement Ceremony of products achieving Vietnam National Brand in 2022 took place. These are typical products representing Vietnamese Brands.

Participation in the program, and achieving the National Brand status requires surpassing numerous criteria. In 2022, over 1.000 businesses nationwide participated, with 172 enterprises, and 325 products meeting the standards to be recognized as Vietnam National Brands. For Ton Nam Kim, achieving National Brand status this time is a great honor, and source of pride. It also serves as motivation for Ton Nam Kim to continuously strive to bring high-quality products to the market, while fulfilling our responsibilities to consumers, and the community.

In the years 2020 – 2022, despite difficult circumstances due to the Covid-19 pandemic, and the unstable political, and economic situation in the world, especially the real estate market was almost frozen, it had a huge impact bad for the production, and business situation of enterprises. In that general situation, Ton Nam Kim has planned for himself the right direction to prove his bravery to stand firm in the face of challenges, achieve impressive production, and business results, and maintain his commercial position its leading brand.

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.

Nam Kim Phu My Steel Plant is planned to have a total capacity of 1.2 million tons per year, specializing in the production of cold-rolled steel, steel coils, galvanized steel, zinc-aluminum coated steel (cold-rolled), aluminum-zinc coated steel, zinc-coated painted steel, steel pipes, steel boxes, steel sections, galvanized steel, black steel strips, and galvanized steel strips. It will be located at My Xuan B1 Industrial Zone – Dai Duong (Ba Ria – Vung Tau).

Nam Kim Board of Directors has recently passed a resolution to establish a subsidiary and invest in this new factory project.

Specifically, Nam Kim Steel Joint Stock Company decided to establish Nam Kim Phu My Steel Co., Ltd., with a charter capital of 500 billion VND, fully owned by Nam Kim Steel Joint Stock Company. The Board of Directors of Nam Kim appointed Mr. Vo Hoang Vu, a Board member, and the CEO of Nam Kim Steel Joint Stock Company, as the legal representative to manage the entire capital contribution of 100% in Nam Kim Phu My Steel Co., Ltd.

Alongside the establishment of its subsidiary, Nam Kim Steel also decided to invest in the Nam Kim Phu My Steel Plant project at My Xuan B1 Industrial Zone – Dai Duong (Ba Ria – Vung Tau), with a total investment of 4,500 billion VND. The plant is projected to have a total annual capacity of 1.2 million tons, specializing in the production of cold-rolled steel, steel coils, galvanized steel, zinc-aluminum coated steel (cold-rolled), aluminum-zinc coated steel, zinc-coated painted steel, steel pipes, steel boxes, steel sections, galvanized steel, black steel strips, and galvanized steel strips.

Nam Kim Steel has consistently emphasized and promoted R&D activities with the motto “Continuous Improvement and Innovation”. Recently, Nam Kim Laboratory was accredited with VILAS 1417 certification meeting ISO/IEC 17025:2017 standards. This recognition affirms Nam Kim technical capabilities and quality management system, ensuring precise and reliable testing results. The laboratory’s test results are widely acknowledged globally within the ILAC system.

With this advantage, Nam Kim Steel will enhance proactive quality control, and management of its products, increase research, testing, and development of new products, and affirm its brand in the high-quality product segment. It will provide products meeting the highest quality standards to customers, and consumers, such as zinc-coated steel Z275 – Z600 G450, aluminum-zinc coated steel AZ250, PVDF-coated cold-rolled steel AZ200, compliant with stringent global quality standards like JIS, AS, ASTM, EN, etc. The company’s flagship product lines, with warranties ranging from 20 to 50 years, have been exported to quality-demanding markets such as Europe, America, Australia, and are trusted by reputable domestic entities like Dai Dung, ATAD, SBC, Zamil, Kirby, PEB…

In April, Nam Kim Steel successfully produced Z600 galvanized coil products. During this period, the company also conducted meaningful community activities.

PRODUCT DEVELOPMENT DURING THE PANDEMIC

The Government’s resolute and effective measures in COVID-19 prevention, and social distancing have brought about expectations of economic recovery, and welcomed new waves of FDI in the global supply chain shift trend. Alongside this, there is a rising demand for high-quality steel to construct factories in the near future. During the pandemic, reduced export orders or delayed deliveries have provided opportunities for enterprises to reorganize resources, focus on R&D, and develop high-value-added product lines as previously planned.

In April, Nam Kim Steel successfully manufactured Z600 galvanized coil products. According to Mr. Quang Trong Lang, Deputy General Director, Nam Kim Steel is the first domestic galvanized steel enterprise to successfully produce Z600 galvanized coil products with continuous galvanizing technology, achieving a coating thickness of up to 3mm. Globally, only a few renowned manufacturers produce, and supply this product. In addition to domestic demand, the company has received numerous international orders, especially from Australia, prompting collaborations with various technology partners to refine the production process, and achieve success.

This product has passed rigorous testing methods by Quatest 3, SGS according to Australian standard AS 1397. It serves as a high-corrosion-resistant steel material solution suitable for specialized environments like livestock pens, coastal solar panel frames, and industrial workshops in polluted environments. Furthermore, this product with its thick Z600 zinc coating, offering high corrosion resistance, can replace hot-dip galvanized components at significantly lower costs.

Moreover, Nam Kim Steel collaborates with partners to develop AZ200 color-coated cold-rolled steel products, and premium coatings with warranties exceeding 30 years.

“The product is manufactured on the advanced technology assembly line of SMS Group – Germany.”

Source: Thanh Nien Newspaper – Link: https://thanhnien.vn/tai-chinh-kinh-doanh/ton-nam-kim-rd-thanh-cong-san-pham-moi-lan-dau-san-xuat-tai-viet-nam-1228324.html