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Thai steel roofing producer eyes Lao market
A major Thai steel roofing producer will cooperate with a local business to invest in a steel roofing coat factory, and has signed an exclusive supplier deal after seeing growth in the local market and the wider Lao economy.
“We see the Lao GDP growth is one of the highest among the Asean nations, so it's desirable for us to have investment opportunities in Laos,” BlueScope Steel (Thailand) Limited President Jason Ellis said in an interview when signing the agreement on Tuesday in Vientiane.
BlueScope steel on Tuesday signed a business cooperation agreement with Lao VXP Steel Roofing and Stainless Steel Company Limited to exclusively supply the Lao company with steel roofing and roofing equipment for distribution in the Lao market.
Currently VXP imports zincalume steel or rolled and coated steel as a raw material for roof production locally.
“It will take a large investment to build a steel roofing coat factory in the future,” VXP Director Visoun Navientiane said.
Mr. Visoun added, “We will need modern technology and machines if we want steel roofing to be coated in Laos.”
In the meantime, the distribution agreement will last for three years.
The ceremony also launched JingJoe Lek brand of steel products.
Mr. Ellis said, “We strongly believe that cooperation with our partner VXP will be very successful. There will be a number of opportunities and investment decisions to be made in the next three years.”
BlueScope Steel has been operating in Asia for 40 years, building a reputation for unsurpassed quality in premium steel building products and pre-engineered steel building in India, China, Indonesia, Malaysia, Thailand, Vietnam, Brunei and Singapore.
“Laos will be the next country we're operating in the near future,” Mr. Ellis said.
BlueScope steel signed the distributor agreement after a 10 year association with VXP.
“The company's steel roofing supply is mainly from BlueScope,” Mr Visoun said.
VXP entered the steel roofing market in 1999 and has seen demand increase each year.
“Demand has increased 30 to 40 percent each year,” Mr Visoun said.
However the company would not reveal any figures.
BlueScope Steel manufactures a range of products for building and construction, manufacturing and automotive applications. From steel slab, plate, hot and cold rolled coil, coated and painted strip products to roof and wall cladding, purlins and house framing.
The modern BlueScope Steel Limited evolved from three pioneer companies in the Australian steel industry together with the more recent acquisitions of New Zealand Steel and Butler Manufacturing.
vientiane times
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