PEB Steel glides over global challenge

PEB Steel glides over global challenge

31/01/2019

Despite widespread assumptions, the US-China trade war is unlikely to affect Vietnam’s steel businesses in the downstream segment.

Throughout 2018, trade tensions between the world’s two biggest economies have reverberated across the world. Among the top products that fall victim to this trade war is steel, starting with Chinese steel imports to the US being taxed by 25 percent in March 2018. The issue is getting complicated as the US has accused Chinese steel manufacturers of shifting products to nearby countries, including Vietnam, Malaysia, and Indonesia, to avoid import duties to the US.

For the past year, these anti-dumping accusations had a negative effect on Vietnam’s upstream steel producers. Steel mills in Vietnam are suspected of importing Chinese products, adding some minor finishing touches before exporting them to the US as “Made in Vietnam” steel. The 250 percent tax on Vietnamese steel, imposed by the US’s Department of Commerce last year, was a bitter pill to swallow for local steel exporters.

The US-China trade war did not only hit downstream steel players, but it provided them a chance to fill in Chinese producer’s boots

As a result, the entire steel industry was taken by doom and gloom, accompanied by news of excess capacity and strict export requirements. However, industry experts are now trying to clarify that the trade war and its related tariffs only affect upstream companies. These are the ones at the very start of the production process, who are responsible for collecting raw materials, such as iron ore or coal, before mixing them and creating steel billets for mid-stream businesses.

According to industry experts, the effect is more muted for mid-stream companies, who are tasked with thinning the steel billets. Going further to downstream counterparts, who use the finished steel to build houses and factories, no significant impact of the trade war can be found. This is mainly because downstream businesses in Vietnam respond first and foremost to the domestic construction demand, which is still robust thanks to Vietnam’s rising status as a regional manufacturing hub.

A lot of people are concerned about our profitability in 2018 due to the trade war. However, it is actually the opposite. Our profits are excellent, and we are proud of the projects we delivered in the past year,” said Sami Nour Kteily, executive chairman of PEB Steel Buildings.

The downstream company posted a historic revenue figure of more than $100 million in 2018, which represents a growth of 30 percent year-on-year.

New opportunities for big players

Most experts agree that the Vietnamese steel industry still has ample room for growth despite the risks of lower exports and the trade war. However, growth opportunities are not the same for everyone. For example, in the downstream segment, pre-engineered buildings (P.E.B.) are expected to flourish, while small stores selling ready-made steel will be phased out.

In many ways, P.E.B. technology is superior to ready-made steel because it is tailored to each construction project. Similar to a tailor, P.E.B. engineers will take into account the requirements of individual customers before designing suitable steel products for specific projects. All of the primary framing members, and secondary structural tools, are treated in the factory before being shipped to the job site for setting up the building.

On the contrary, ready-made steel producers – similar to fast-fashion manufacturers – have a one-size-fits-all approach to construction. Customers have to choose from the existing range of materials, which may not match their own unique needs.

The change towards P.E.B. technology in Vietnam is already happening, with 80 percent of domestic factories now built with P.E.B. technology instead of ready-made materials. This trend is similar to nearby markets such as Myanmar, Cambodia or Laos, where steel mills cannot meet the rising demand for tailored buildings. The P.E.B. market in Vietnam, specifically, is expected to grow by 15 percent in the near future, as manufacturers flock to the country thanks to Vietnam’s increasing openness to global markets.

P.E.B. technology is flourishing in Vietnam, as 80 percent of factories chose it over ready-built materials

PEB Steel Buildings’ Kteily said that even within the P.E.B. industry, there is a divide between major businesses and smaller competitors. Bigger players have three distinct advantages: an experienced in-house team of engineers, the latest software of certified standards, and a huge inventory of at least three months’ worth of sales. At PEB Steel Buildings, this amounts to $15 million of inventory.

We want to build efficient, effective and economical buildings. We should take particular care not to repeat the mistakes of the ready-made system. Our products must be of certifiable origin and our in-house engineers need to always make sure that we can provide tailored solutions to each customer,” said Kteily.

At factories, major businesses can afford to have the most experienced welders, together with good materials and a strong team of controllers, who keep tabs on product quality. Added advantages include high-quality accessories and a no-waste system that minimizes environmental effects.

Going forward

Buoyed by good prospects and a healthy distance from the US-China trade war, most downstream steel businesses in Vietnam are upbeat about the future ahead. PEB Steel Buildings is among the biggest optimists – the company finished 2018 with a bang and is now eager to see what the future has to offer. Just a few months ago, the company finished the steel structure for the first stage of VinFast’s automobile factory, located in the northern port city of Haiphong.

This is our proudest achievement in 2018, as we delivered the project in record time and recorded no casualties or penalties,” said Kteily.

The company is the largest supplier of steel structures for the complex and is also the sole foreign contractor to implement P.E.B. technology at the site. The company is “incredibly happy” to take part in a landmark project for Vietnam’s nascent automobile industry.

Looking forward, PEB Steel Buildings said that it is planning to export Made-in-Vietnam steel to different markets around the world, as far as El Salvador in the Caribbean. Bound by its commitment to Vietnam’s sustainability goals, the 25-year-old company is also striving to train Vietnam’s next generation of high-quality engineers and to promote green construction in the country.

PEB Steel glides over global challenge

2018 PEB Steel's Overview! Success comes from great efforts!

29/01/2019

Another successful year 2018 has come to PEB Steel Buildings. Every success has the story to tell, let’s see how PEB Steel did it, and we are believed that our story will inspire you to be succeeded like us for the Golden Pig Year 2019 coming!

Happy New Year 2019 to all!

PEB Steel Buildings.

FOCUS TO POWER GENERATION SECTOR

22/01/2019

PEB Steel constructs the pre-engineered buildings for VinFast’s production complex

05/11/2018

PEB Steel Buildings is proud to have provided steel structures for the VinFast automobile manufacturing complex, the first of its kind in Vietnam developed by Vingroup.

Leveraging its 24 years of experience gained through 7,000 large-scale projects in the locality and foreign markets, PEB Steel has met several complex requirements and criteria, including technical qualifications, competency, progress, and quality conducted by Vingroup.  PEB Steel has become the largest supplier of steel structures for the first phase of the complex and also the sole foreign contractor to construct the pre-engineered buildings for VinFast’s plant.

Sami Kteily, executive chairman of PEB Steel, said that “PEB Steel’s factories have operated at 150 percent capacity and run up two shifts in five continuous months to stay on track. Even during the Tet holiday or the monsoon season, the company was racing to complete the construction in time.”

According to Truong Khoi Nguyen, general manager of PEB Steel Hanoi, to improve the quality of VinFast’s E-scooter assembling workshop, PEB Steel also fabricates the steel frame with increasingly elevated strength resistance properties. As a result, the structural frame can increase strength resistance by 20 percent compared to the original design without raising the production cost.

Through its excellent track record, PEB Steel has greatly contributed to the seamless process and successful completion of the VinFast automobile manufacturing complex. As VinFast’s plans and ambitions go beyond simply setting up a car company, it is laying the foundations for Vietnam to become a car manufacturing nation. PEB Steel is honoured to join this landmark project that puts Vietnam on the global car map.

Full article on Vietnam Investment Review, November 2018

Building base for local car production - Vietnam Investment Review, November 2018

PEB Steel at Construction, Power & Mining Myanmar 2018

15/10/2018

Construction, Power & Mining Myanmar 2018 – In a joint event with 200 companies representing 500s of brands from 7 National Pavilions from 6 countries e.g. Singapore, Thailand, China, Korea, Malaysia, and India, PEB Steel Buildings presented as key pre-engineered steel buildings company.

Early this year, PEB Steel extends its regional reach to Myanmar with a $25 million investment in the latest steel manufacturing facility, capitalizing on the country’s booming construction industry.

This exhibition is the leading event for Building & Construction, Electric Power & Renewable Energy, and Mining & Minerals Recovery. It is truly the No. 1 and largest industry event of its kind in Myanmar and provides the best platform to connect to the country’s rapidly expanding infrastructure industries.

Construction, Power & Mining Myanmar return for its 6th edition, taking place 11 to 13 October 2018

PEB Steel’s stand at the exhibition

Life at PEB: Mid-autumn 2018 celebration

26/09/2018

Mid-Autumn festival is one of the most interesting holidays for children. Celebrations of Mid-Autumn Festival this year 2018, PEB Steel held a joyful event to bring an unforgettable night for PEBer’s children and to strengthen the relationship among our employees. The special night took place on 22nd September at Hong Van Theater – Saigon Superbowl with many exciting activities such as clown making balloons, lion dance, magic show, kids dancing, and many interactive games and gifts.

At PEB Steel, we celebrate this kind of event annually, and do hope over time, all the children were growing up, but childhood memories about a Full Moon night will never fade.

Clown making various balloon shapes for children

Traditional Lion dance

Awesome magic show

Lovely performance from PEBer’s children

PEB family had a wonderful Mid-Autumn festival together!

PEB Steel replaced new roof panel at 19-5 Kindergarten

08/09/2018

Ba Ria-Vung Tau – PEB Steel Buildings recently completed a construction project to repair and renovate 19-5 Kindergarten at Hamlet 4, Hoa Hoi town, Xuyen Moc district, Ba Ria-Vung Tau province. The works are replacing the whole 1,000sq.m roof paneling with an advanced AluPeb material. This AluPeb has a special surface with anti-dust function, high-temperature reflection, and will keep its color through the years ahead. Also, the firm re-painted all classrooms, kitchen, the principal’s office, the fence, and the school gate, with the total area of 2,000 sq.m, to create a brighter space, as well as renovated the sanitary facilities to bring a safer and more comfortable space to the children.

The CSR program at 19-5 Kindergarten is part of PEB Steel Buildings’ annual activity aiming to contribute to the building of a sustainable community. Back in 2016, the company also sponsored the replacement of the 1,200 sq.m roofs at Thanh Uyen Secondary School at Phu Tho province.

This year (2018), PEB Steel coordinated with the Education Department of Xuyen Moc province and the Board of Principle of 19-5 Kindergarten to finish the construction in August 2018, offering a better, more comfortable place to teachers and children before the new academic year 2018-2019 begins.

PEB Steel’s CSR activities will continue to target impoverished living areas to build and improve Vietnam in the future.

The representative officer from Xuyen Moc district awarded to PEB Steel

Mr. Adib Kouteili delivered a donation board to the school’s principal

Mr. Adib Kouteili gave scholarships to the children who have the difficult condition

also gifted to classes

Children prepared for their performance with help from teachers

PEB Steel replaced all old roof at the school by AluPeb product