Ton Dong A storms domestic steel industry

The Vietnamese economy is growing strongly, with the highest demand for steel amongst the ASEAN countries in 2015, according to data from Southeast Asia Iron and Steel Institute. In this context, Ton Dong A has sharply increased production capacity. Nguyen Thanh Trung, chairman and general director, said the company has invested over $200 million in factory construction and technology upgrade to meet increasing demand.

Ton Dong A has also welcomed JFE Shoji as a strategic investor. With the capacity of 34 million tonnes a year, making it the second largest steel complex in Japan and the eighth biggest steel producer over the globe, according to 2015 statistics released by the World Steel Organization, the Japanese partner wishes to tap into the potential of the Vietnamese market. JFE Shoji has become a strategic investor of Ton Dong A through a share acquisition implemented by its affiliate JFE Shoji Trade Vietnam Co. Ltd.

Cooperation with JFE Shoji has helped Ton Dong A to grow and improve its products.

The two sides have developed a solid relationship during this cooperation. The Japanese partner has helped Ton Dong A expand its domestic market share, boost exports, take part in the global supply chain, and make further upstream and downstream investments in the steel plate segment.

“With a worldwide distribution system and high-quality material supplies, JFE Shoji helped Ton Dong A secure strong growth and make significant improvements in terms of the scale and quality of its coated steel,” Trung said.

Focusing on its advantage—supplying high-quality coated steel plates at competitive prices and the best services—Ton Dong A has invested in modern and environmentally-friendly equipment and production lines imported from Japan, Europe, and the US.

Ton Dong A has developed a distribution network spanning across the nation, affirming its leading position in the domestic coated steel industry and expanded exports in the ASEAN, Africa, and the Middle East as well as the US, Australia, and Europe.

In 2016, the company sold 365,000 tonnes of products, up 40 per cent compared to 2015. Revenue was VND6 trillion ($270 million) and after-tax profit at VND500 billion ($22.42 million), up 130 per cent on-year. It expects to raise sales volume to 550,000 tonnes in 2017 and one million tonnes each year in the 2018-2020 period. The company’s revenue is forecast to jump from VND8.5 trillion ($381 million) this year to VND14 trillion ($628 million) by 2020. From 2017, the company has supplied materials for home appliance manufacturing, aiming at replacing coated steel imports by 2020.

At its annual general meeting in 2016, Ton Dong A unveiled plans to list on the Ho Chi Minh Stock Exchange in the third quarter of 2017.

Ton Dong A’s high-quality products are exported to the US, Australia, and Europe.

To prepare for the listing, in December 2012, the company invested in a more than $2-million enterprise resourcing planning (ERP) solution produced by Oracle and a business intelligence (BI) system to improve production and governance. Ton Dong A became the first coated steel firm in Vietnam to apply the two systems since 2016.

It has also maintained ISO 9001 system on quality management and ISO 14001 on environment management, while preparing to apply the ISO 45001 - Occupational Health and Safety Management System and ISO 50001- Energy Management System.

With the motto “Quality-Prestige-Sustainable Development,” Ton Dong A is asserting its commitment to product and service quality, while building solid brand reputation domestically and worldwide.

RELATED CONTENTS:
	Ton Dong A Corp cuts ribbon on $70 million plant
	Ton Dong A to build second steel sheet mill