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Press Release
Business Alliance with Major Vietnamese Plastics Manufacturer
Jul 23, 2013

SEKISUI CHEMICAL CO., LTD

-To Acquire the Southeast Asian Water Infrastructure Market-

 

SEKISUI CHEMICAL CO., LTD. (President: Naofumi Negishi, hereinafter called Sekisui Chemical) signed a business alliance contract on July 22 with TIEN PHONG PLASTIC JOINT STOCK COMPANY (Chairman: Tran Ba Phuc, hereinafter called TifoPlast), a major plastics manufacturer in the Socialist Republic of Vietnam.
The plan is to use the broad production and technical skills for water and sewage systems*1 possessed by Sekisui Chemical, and the strong sales network and production systems possessed by TifoPlast, to assure market dominance in Vietnam by both companies, and to expand the receipt of orders for public water and sewage systems, and civil construction drainage systems.

*1: Water and sewage system: Comprehensive support from diagnosis, design, and strength calculations to  the supply of commercial materials

 

1. Background

Vietnam is continuing its economic growth against a background of stable law and order and abundant labor in addition to being fortunately located in the center of the ASEAN countries, and inroad after inroad are being made by overseas businesses, including Japanese businesses. Meanwhile, there is also the prospect of high demand in future while infrastructure such as water and sewage systems, etc., are being prepared.
Sekisui Chemical's Urban Infrastructure and Environmental Products Company (President: Kozo Takami) plans to advance overseas business based on business strategies per the three areas of Europe, North America, and Asia. As the strategy for Asia, Southeast Asia has been positioned as a major market, and the opening up of the market is being firmly promoted.
TifoPlast is a major Vietnamese plastics manufacturer founded in 1960, and which has a strong sales network and production systems within Vietnam, centering on piping materials. Sekisui Chemical and TifoPlast have so far forged a good trading relationship through such sales activities as Sekisui Chemical systems for water and sewage in the Vietnamese water infrastructure market.
As a result of implementing market surveys to plan our business expansion in Vietnam, TifoPlast has a sturdy local base, leading Sekisui Chemical to the conclusion that a business alliance with TifoPlast, with whom we have forged a good relationship, is effective. 

 

2. Aims and Details of the Business Alliance

Sekisui Chemical and TifoPlast plan to expand business in Vietnam by making use of their respective advantages, and by supplying products and services matched to the needs of the Vietnamese market.
Further, Sekisui Chemical is examining the effective use of TifoPlast production bases to also develop the value chain business*2 in the water infrastructure market, into which we have poured great effort, in Southeast Asia. Meanwhile, TifoPlast is greatly interested in Japan's excellent infrastructure base, and is considering ties to the development of technologies and products for which need in future in Vietnam will rise, through an alliance with Sekisui Chemical, which has a broad range of products and implements comprehensive business management regarding pipelines.

*2: Value chain business: A comprehensive service not only for single product sales, but unifying all elements from design to maintenance
 

Main Business Alliance Items

・ Using TifoPlast's sales network in Vietnam to implement joint sales activities between both companies

・ To permit TifoPlast the use of Sekisui Chemical patents and production know-how

・ To loan TifoPlast the facilities required for production, and to manufacture Sekisui Chemical products 

 

3. Business Objectives

Joint sales activities and joint acceptance of orders will start from July 22, and the aim is for joint total sales of 5 billion yen five years hence.

 

4. Overview of TifoPlast

 

1) Company Name: TIEN PHONG PLASTIC JOINT STOCK COMPANY

 

2) Address: No.02An Da, Ngo Quyen, Hai Phong, Vietnam

 

3) Establishment: May 19, 1960

 

4) Representative: Tran Ba Phuc

 

5) Principal Business: Production and sales of all plastic products

 

6) Capital: Approx. 2 billion yen (37% of which is owned by the government)

 

7) Employees: Approx. 1,170 (as of end of FY2012)

 

8) Sales: Approx. 11 billion yen (actual results for FY2012)

 

9) Production Bases: 5 plants: 2 in Hai Phong, Nghe An Province, Binh Duong, and Laos

 

10) Sales Bases: 5 sites: Hai Phong, Nghe An Province, Binh Duong, Ho Chi Minh, and Laos

 

Production Bases&Sales Bases

 

July 22: Business Alliance Contract Signing Ceremony

July 22: Business Alliance Contract Signing Ceremony

 

Press Contact

SEKISUI CHEMICAL CO., LTD.
Corporate Communication Department, Public Relations Group
Fax:(+81)3-5521-0510

Disclaimer

This press release may contain forward-looking statements. Such forward-looking statements are based on current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements due to changes in global economic, business, competitive market and regulatory factors.
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