No time to waste for CST
No time to waste for CST
Global leader in storage tanks and covers, CST Industries, has deepened its footprint in Vietnam via a distribution contract signed with Son Ha Group, choosing the nation as a very sensible destination for the US-based company to invest in a manufacturing site in the near future.
Asia’s and Vietnam’s leading manufacturer of stainless steel household and industrial products, Son Ha Group (HOSE: SHI), following the strategic co-operation agreement concluded with CST Industries last week, will be distributing CST factory coated tanks and covers, including CST Industries large capacity storage tanks, in the domestic market.
CST Industries has grown to be the world-largest manufacturer of coated tanks, yet has been paying great attention to the Asian market, including Vietnam. CST Industries has transitioned from an export business of tanks to an international one, with a focus on extending to Asia, when it first opened its Singapore office in 2007.
“Looking at the market, we needed skills, that are very expensive in Singapore,” said Joe Brennan, CST Industries’ managing director for Asia Pacific. “We therefore see a great future in Vietnam. We needed project managers, engineers, graphic engineers and of course Vietnam has a strong skill industry.”
CST Industries, as such, set up its regional headquarters in Vietnam, taking care of all Asia, a few years later, said Brennan.
The partnership with Son Ha, according to Brennan, is a result of CST Industries seeing a local company with long-term vision, as well as an established brand name and presence in Vietnam.
“When it comes to build larger, major projects with water, wastewater, and many applications you will see, Son Ha makes a great partner with CST Industries.”
“The link between us will open up opportunities to develop further and co-operate in the long-term. We’re committed with our partner to expand our network and bring the best products to our customers,” said Le Vinh Son, Son Ha’s chairman.
The Vietnamese market, according to Brennan, has moved out of the so-called “one house has to do all things”, and turned into a nation whose leadership has grown to the point that they “think more strategically about neighborhoods, infrastructure, about water supply, and how they control the waste stream.”
“It is not enough for an investor to come to Vietnam and [say] ok we’re going to produce beer, but where the wastewater will go, it has to go somewhere. And we provide solutions to store that and to treat it,” said Brennan. “And again, the leadership of the Vietnamese government is proving in very positive ways that allow investors to think strategically in this way.”
Through a partnership with Son Ha, CST Industries is also looking to expand its manufacturing site to Vietnam, with a “step by step” strategy, according to the Ho Chi Minh City-based managing director.
“The first step is we have brought engineering project management and the execution resources to manage our projects,” said Brennan, adding that “the second step, we have outsourced as we bring the panels from the US and then we source fabrication of galvanised stainless steel and components in Vietnam.”
“The third step, we’ve just announced that we are going to begin manufacturing our galvanised tank line in Vietnam,” Brennan told VIR. “The next step, of course, and it has to come with volume, is we intend at some point to open a manufacturing site in Asia, and certainly Vietnam makes sense to us.”
