TOP INTERVIEW
Working with Yamato Kogyo for Further Growth in the ASEAN Region
Siam Yamato Steel Co., Ltd.
Jaydsada Plungmanee Managing Director
Siam Yamato Steel (SYS), the mother plant of ASEAN and a joint venture with Siam Cement Group—one of Thailand's top companies—celebrates its 30th anniversary since its inaugural hot rolling in 1994. Established in 1992, SYS stands as the leading manufacturer of H-beams and section steel in Thailand, promoting the adoption of high-quality construction materials. Beyond manufacturing, SYS demonstrates a strong commitment to environmental responsibility by investing in large-scale solar power initiatives, including both mega solar and innovative water-based solar power generation systems, paving the way for a sustainable future in the industry.
Yamato Kogyo‘s Technology and Trust behind SYS
In the early stage of SYS, Yamato sent a group of expatriates as instructors to teach us about steel production and introduce technologies that enhance the manufacturing efficiency and quality, including “continuous improvement mindset” .
In addition to the transferring technology that enables SYS to produce the quality products, having shareholders who understand business situation and demonstrate patience especially during the challenging initial state is very invaluable to us.
Throughout the ups and downs of business operations, Yamato provides support in various aspects and trusts the local management team. This trust and support have been a driving force for SYS helping overcome difficult situations, adapt to circumstances (resilience), and achieve sustainable growth to date.
Currently, SYS employees view Yamato as a provider of opportunities, offering job creation, career development, and stability for all employees and their families.
And as Yamato expands its investments in Vietnam and Indonesia, based on the ASEAN regional strategy, this creates opportunities for us to become an investor in these companies and generate the financial returns and advancing our employees to the next level as a technical providers.
Pride in Being the Mother Factory of ASEAN
SYS possesses two core strengths that position effectively as a mother factory in this region.
The first one, the extensive market experience. We have been actively manufacturing and selling structural steel products in Southeast Asia for nearly 30 years. This long-standing present has enabled us to build a robust customer database and establish strong partnership with key clients. Our deep understanding of the market dynamics in pivotal regions such as Malaysia, Singapore, Indonesia, and Philippines, is invaluable. We are committed to sharing this knowledge and experience with other companies in the group, assisting them in adapting effectively to their respective sales environments. As the Yamato Kogyo Group look to the future, having a regional sales overseas will be pivotal and SYS is well-prepared for this role due to its extensive regional footprint.
And second one, intrinsic manufacturing technology and experience. SYS benefit from intensive technology transfers from Yamato Kogyo, and boasts over 20 million tons of experience in producing the structural steel product. This include the development of various proprietary techniques. Our profound expertise in the production process can be leveraged to expedite the development timelines of our joint venture companies. Facilitating their accelerated success, for instance, at PY VINA, we provided crucial guidance and support in overcoming the production challenges with medium and large angle, enabling them to resume smooth operations and achieve significant revenue growth since last year. We have also enhanced the calculation yield in rolling and implemented Time & Motion Studies to bolster rolling productivity. And this best practices are transferable and can be effectively applied to foster the development of GYS as well.
Joint Venture First Philosophy Underpins SYS' Challenges in ASEAN
We have had the opportunity to conduct business with Yamato for over 30 years, allowing us to learn and develop our capabilities to support overseas investment and transfer technology and marketing expertise to joint venture companies. SYS is committed to achieving the status of ASEAN Mother factory and is prepared to support various future projects alongside Yamato to achieve mutual success.
In this context, I think the Joint Venture First philosophy is quite important because Yamato invests in a lot of company worldwide, and to have this concept, I think it is important. Otherwise, sometimes there is the challenges. But once we apply the Joint Venture First concept, I think it will overcome a lot of difficult situations.