Zamil Steel to open second plant in Vietnam

Wednesday, 17th August 2005

HCM CITY Zamil Steel Viet Nam is making the southern market its new focus, and is planning construction for a new factory in Dong Nai Province in early September, according to General Director George Kobrossy.

Zamil Steel already runs a factory in Ha Noi, manufacturing pre-engineered buildings.

"Our factory in Ha Noi has reached its maximum capacity and now we see the need to invest in a new factory (in the south) to meet the demand of the southern market and exports," Kobrossy said at a press conference yesterday in HCM City.

The new, US$8 million factory will be built on 45,000 sq.m in the Amata Industrial Park, and it will include a $1 million production line for new roofing products.

The new facility will turn out 1,000 tonnes of products in its first year of operation, set to begin in mid-2006.

Meanwhile the existing $27.5 million factory, which began production in 1999, now offers customers around 48,000 tonnes annually. Customers include the Cam Ranh Sugar Mill, Phu My Nitrogenous Fertiliser Plant and the Phu My Steel Factory.

Around 60 per cent of its output is sold domestically while Southeast Asia, China and Japan make up the remaining 40 per cent of Zamil's customers.

The Saudi company Zamil Steel Industries Co established a representative office in Viet Nam in 1993 and in 1997 it joined with Japan's Mitsui Co to establish Zamil Steel Vietnam. It runs 16 offices spread over Viet Nam, eight other Southeast Asian countries, China and Japan.

Zamil's first plant was built at Noi Bai Industrial Park with an output of 4,000 tons of steel per month.

Zamil has 30 percent market share in pre-engineered steel for buildings in Vietnam, and over 1,500 building projects nationwide use the trademarked products.

Zamil Steel is headquartered in Dammam, Saudi Arabia, and has fabrication facilities and Research and Development centers in Saudi Arabia, Egypt and Vietnam.