ASSAB Pacific Pte. Ltd. opened its first subsidiary in Vietnam in March 2013. Within just a few years there is now a second site in this promising market, in Hanoi.
ASSAB Pacific Pte. Ltd., the Asian sales company in the Special Steel Division, is Asia’s best established and networked supplier of high-quality tool steels with downstream services. After Ho Chi Minh City (formerly Saigon), now the capital Hanoi in the north of the country has a completely equipped warehouse including sawing, milling and grinding machines. The 1.200 m2 warehouse will now house around 50 tons of high-alloyed Uddeholm brand grades, and is scheduled to take on a further 15 employees by the end of the business year. The site with its seven employees is already fully operative. The young and dedicated team is also supported by experts from Singapore in areas such as providing customers with technical advice and securing the supply chain.
Many enterprises are locating in Hanoi
Whereas Vietnam’s most important industrial location, Ho Chi Minh City, is specialized in the production of household goods, consumer electronics such as TVs, and manufacturing the mopeds which are so important to the country, Hanoi is strongly positioned in the mobile telephony and IT hardware sectors. With the two cities separated by a distance of around 1,800 km, a further site was needed to ensure on-time deliveries. ASSAB is following its customers with its new subsidiary in Hanoi, providing them with the materials they need to raise Vietnam’s quality standards to those of Japan or Korea. Accordingly, a vacuum heat treatment furnace will be installed at the ASSAB Pacific site in Hanoi during the business year 2016/17, just as investments have been made in the hardening shop in booming Ho Chi Minh City over the past two years. The intention is to have secured around 20% of market share in the country by around that time. The trend towards higher-alloyed materials in Vietnam is supporting this endeavor.
The new site in Hanoi will benefit from an extensive Asian network. Both the central warehouse in Singapore, as well as the warehouse in Ho-Chi-Minh City, can help overcome delivery bottlenecks at short notice. And when establishing the company, experts from the ASSAB subsidiaries in Korea and Japan respectively communicated with key local Korean and Japanese customers: this is an advantage only ASSAB can offer. Joining forces will help Hanoi quickly become established as a site.