ThyssenKrupp Group is expanding its foothold in Vietnam by increasing its investment capital despite economic downturn challenges.
The firm is a globally respected operator in a range of industrial fields
ThyssenKrupp Materials Vietnam, formerly a joint venture between ThyssenKrupp Materials International GmbH and Vietnam’s Dong Do Metal Company, in June this year announced that it had become a 100 per cent foreign-invested company after the German company acquired Dong Do’s stake.
“This investment transformation to a 100 per cent foreign-invested company is a strong and long term commitment from ThyssenKrupp Group to the Vietnamese market, especially when the Vietnam economy in particular and global economy in general are experiencing a tough time,” said Doan Tuan Viet, general director of ThyssenKrupp Materials Vietnam.
Established in Vietnam in 2007 with initial investment capital of $8 million, ThyssenKrupp Materials decided to increase total investment capital to $20 million. Furthermore, Viet said the firm mobilised $12 million from ThyssenKrupp Materials International GmbH to expand its stainless steel and non-ferrous business and investment capital in Vietnam.
As part of ThyssenKrupp Materials International, ThyssenKrupp Materials Vietnam concentrates on providing materials and value-added services to a wide range of commercial and industrial sectors, manufacturers and materials trading companies in Vietnam.
Even though the demand for stainless steel in Vietnam is relatively low, at around 250,000 tonnes per year, Viet said ThyssenKrupp Group saw huge potential in this country given the growth of the economy and expansion of the domestic construction and manufacturing sectors.
“There are thousands of stainless steel companies in Vietnam. But with a hundred years of experience and being a leading stainless steel supplier in the world, we believe in bringing high quality products and best services for customers in Vietnam,” said Viet.
He added Vietnam’s economic downturn over the past two years had created new opportunities for ThyssenKrupp Group as the firm found many new customers under its business principle of quality, prestige and professional.
With more than 180,000 workers, ThyssenKrupp Group operates in 80 countries worldwide and it is specialised in many industries including steel, elevators, plant technology, components technology and marine systems. Last year, total revenue of ThyssenKrupp Group reached $70 billion.
ThyssenKrupp Group now has three companies in Vietnam: ThyssenKrupp Materials, ThyssenKrupp Elevator and ThyssenKrupp Polysius. In addition, the group also has two representative offices in this country with the major functions of studying the market potential.