Industrial Gases Manufacturing and Distribution Company in Binh Duong Province, Vietnam

About SIG Vietnam

In this article, I report on an industrial gases manufacturing and distribution company SIG, Sing Industrial Gas Vietnam. It is difficult for ordinary people to imagine how industrial gas impacts our daily life. But, it is easy to understand the importance of supply oxygen for medical purposes during the coronavirus pandemic. Patients with serious pneumonia after coronavirus infection need a medical oxygen supply. In 2021, when the pandemic hit the peak, there was a serious shortage in the medical oxygen supply. Mass media widely reported that the families of coronavirus patients looked for hospitals where there was oxygen supply available.

Industrial gas is an invisible and intangible substance, however, it is extensively utilized in many industrial sectors and an indispensable substance in our daily life. For instance, semiconductors, which are embedded in PC, automobile and home electronics, require more than 30 types of specialized industrial gases during the manufacturing process.

Industrial gases are broadly consumed in heavy industry sectors such as steel manufacturing, ship building, automotive and energy sectors. It is also consumed in the food processing and beverage sectors. Industrial gases are utilized in many industrial sectors and strongly support production of high quality goods.

The factory of SIG is located in My Phuoc 3 Industrial Park in Binh Duong Province, 36 km north of Ho Chi Minh City, about 1.5 hour by car. The factory was constructed 10 years ago in 2012. Major shareholder of SIG is SSB (Sing Swee Bee) Group in Singapore.

SSB was established in 1978 and has been trading industrial gases and its’ relevant facilities and engineering services. SSB has been expanding the businesses in ASEAN (Association of South East Asian Nations) countries.

SSB made decision to enter into the Vietnamese market due to the high potential of economic growth. Among the many industrial parks in Vietnam, My Phuoc is one of the very successful industrial parks. Many Japanese companies have been operating their factories and warehouses in My Phuoc 3. According to the family budget survey in 2020, Binh Duong Province became one of the highest family revenue provinces with the exception of capital cities Ha Noi and Ho Chi Minh City. Mr. Peh Chee Siong, General Manager of SIG, mentioned that he was unable to imagine the current situation and did not expect such strong economic growth in Binh Duong Province 10 years ago. It was indeed a wise decision to invest the factory in Binh Duong.

When SIG’s factory was completed and commenced operation, SIG did not have a customer. Mr. Peh Chee Siong replied to this question, how SIG identified and increased their customers. The details of the sales strategy were basically secret information, but it was simple, just knock one by one on company’s door in the Industrial Park. SIG had a face-to-face meeting with responsible persons and persons in charge of potential customers and explained their products and services. SIG’s walk-in sales approach is a royal road for customer development.

Products of SIG Vietnam

SIG’s current main 4 products are liquefied oxygen, nitrogen, argon and dissolved acetylene. Oxygen is used for metal connection and welding procedures as well as in the medical supply. Nitrogen is a quite common gas since 78% of ordinary air is nitrogen, but nitrogen is broadly used for its inertial properties. Argon gas is also one of the components of air, but containment rate is only 0.93%. Therefore, argon gas is called rare gas. It is also used as an antioxidant and anti-nitride.

High purity oxygen, nitrogen, and argon are manufactured by using ambient air as a raw material. Each component is separated by utilizing the difference of their respective boiling points. SIG owns and operates this air separation plant at the factory site.

Acetylene gas is also produced at their factory site. Acetylene gas is high combustion efficiency gas mainly used for welding, metal cutting, and heat treatment in general manufacturing sectors.

SIG Vietnam in the Covid-19 pandemic

During the coronavirus outbreak in 2021, the number of patients surged in the southern parts of Vietnam and mortality rate even hit more than 300 per. The Vietnamese government thus announced that all employees had to stay, eat, sleep and work within the factory site. Total separation from the society was requested, otherwise the company or factory had to terminate all operations.

Plant operators, delivery drivers, and office workers of SIG stayed at the factory site and separated from society for 24/7 during the 3 month lockdown period in order to continue manufacturing industrial gases especially oxygen. During the lockdown period, demand of industrial gases for the general manufacturing sectors nosedived. However, demand of medical oxygen surged and fell into a serious shortage. In accordance with the local government’s requirements to supply oxygen to the field hospitals, SIG focused on manufacturing medical oxygen. Ms. Yen Phan Sales Manager of SIG proudly said that she had stayed at the factory and did her best to reply to this socially required mission. Revenue of SIG in fiscal year 2021 increased by 18% compared to 2020. It is mainly because of the surge to medical oxygen supply. SIG executed a highly valued and difficult social mission.

Osaka Gas Liquid invests in SIG Vietnam

In 2020, Osaka Gas Liquid Co., Ltd, (OGL), Japanese industrial gases manufacturer, underwrote a capital increase of SIG and participated in management of SIG. It is expected that OGL will provide skill and know-how for the industrial gas business and assist sales activities to Japanese companies in Vietnam. Mr. Peh Chee Siong said that SIG expects OGL’s sales assistance in regards to Japanese companies. It is a general tendency that Chinese companies prefers to communicate in Chinese and Japanese companies prefer Japanese communication. OGL will play a role of “lubricant” for business communication between SIG and Japanese companies.

At the end of interview, Mr. Peh Chee Siong underlined that SIG would like to be a company to sell safety as well as their products. Some industrial gases are highly flammable, high pressure and/or extremely low temperature. Handling of the gases without proper knowledge is very dangerous. As an expert in industrial gas, SIG wishes to provide total solutions to all of their customers. By tight collaboration of the Singapore based company SIG and Japanese based company OGL, They are vigorously looking ahead to further business expansion and diversification in Vietnam.

Original post: https://vn-bizmatch.com/vietnamese-6/