Trung Do Joint Stock Company: Affirming a strong brand in construction materials production

(Baonghean) - After 15 years of shifting to mainly investing in the production of construction materials such as tiles, fired clay, ceramic tiles and commercial concrete... Trung Do Joint Stock Company has created its own position and brand.

In addition to the products under the brand name “Trung Do” that have become familiar to customers such as Nam Giang, Hoang Mai or Hong Linh fired bricks, in the past 5 years, the Company has continuously launched new products, typically granite tiles, digitally printed Porcelain floor tiles or high-class ceramic tiles Queen, Phoenix tiles and accompanying accessories, commercial concrete under the brand name Trung Do… Thanks to that, continuously for many years, the company’s revenue and profit have grown impressively, creating more and more jobs and improving income for workers.

However, from the reality of participating in the construction materials production market, the company's leaders realized that this is a production and business field with very fierce competition. To stand firm, it is necessary to continuously innovate and be flexible in making production and business plans. In recent years, despite continuous investment in replacing and adding many equipments to increase capacity and launch new products, the changing requirements for input materials, especially fired brick products, have caused many difficulties in production.

In addition, the production technology line the company invested in 15 years ago has revealed some limitations and inadequacies, failing to meet the increasing demands and tastes of the market; wasting a lot of labor, operating costs and input costs of raw materials and fuel, increasing product prices...

Workers of Trung Do 1 Company are constructing a 21-storey building. Photo: Phuong Ha

In the above context, with efforts, creativity in management and production, business and the support and trust of partners and customers, in 2016 - 2017, the company's business results have been positive. In the field of investment in real estate investment projects and construction and installation, although no longer focusing on investment, last year, the company completed a number of construction and installation items of the Nam Nguyen Si Sach Urban Area project; at the same time, continued to invest and self-implement the construction of a row of townhouses along Duy Tan Street, also in the Nam Nguyen Si Sach Urban Area. The company continues to invest in construction, upgrading, and repair of works and construction items at construction material factories. In addition, the company also agreed to let TASECO Group buy back all investment rights of Quang Ngai Urban Construction Joint Stock Company in the No3 - T6 Diplomatic Compound project, with Trung Do Joint Stock Company as the project investor to serve as a basis for changing the design to suit market needs.

In parallel with investing in real estate and construction projects, in 2016, Trung Do Joint Stock Company continued to invest in developing construction materials production. Currently, in addition to the 3 brick factories Trung Do Hong Linh, Trung Do Nam Giang and Trung Do Hoang Mai producing over 107 million standard fired bricks/year. In 2016, Trung Do Granite Factory produced over 4 million m2 of granite tiles and over 3.7 million ceramic tiles, Queen tiles are a remarkable new milestone. In addition, with 2 concrete mixing stations in Hoang Mai and Nam Giang, the company has produced 163,000 m3 of commercial concrete for the market.

To proactively replace Trung Do Hong Linh Brick Factory (which will soon be relocated out of Hong Linh town) and respond to changes in input materials for brick production using new technology (hill brick production), the company is urgently implementing investment in a Tuynel brick factory with a capacity of 120 million bricks/year; total investment of about 160 billion VND in Thach Ha district, Ha Tinh province. Currently, the project has been approved and allocated land by the People's Committee of Ha Tinh province, the company has completed compensation and site clearance work and is building the factory to go into production at the end of 2017.

Nam Nguyen Si Sach Villa Area is invested by Trung Do Joint Stock Company. Photo: Phuong Ha

In addition to the above investment activities, to increase capacity and save production costs, also in 2016, the Company invested in a number of machinery and equipment worth up to 46 billion VND, including 1 HP 2890 hydraulic press worth 16 billion VND added to the Granite factory; equipped with 2 more concrete pumps along with a number of excavators, bulldozers and some other motorbikes for construction sites...

Along with investing in equipment, the company regularly checks product quality, strictly controls the quality of input materials; maintains good condition of production equipment, periodically checks production norms, uses reasonable and locally available raw materials and fuels; focuses on improving and rationalizing production to increase labor productivity. Along with that, the company actively participates in social activities, gradually taking care of improving the lives of workers; strictly complies with the reporting regime, publicizes financial accounting; fulfills obligations to the state budget...

With the above efforts, in the fiscal year 2016 - 2017, the company's revenue reached a record of 594 billion VND, an increase of 16.48% compared to the previous year's plan; profit reached a record of 77.24 billion VND, an increase of 103.27% compared to the plan set out last year.

Workers at Trung Do Granite Factory load and unload Phoenix tile products. Photo: Phuong Ha

In order to further improve production and business efficiency and create a premise to enter a stronger and more sustainable development phase, in 2017, the company strives to increase production and business value to 700 billion VND, of which revenue reaches 600 billion VND. The company's production and business development strategy in the coming time is that after investing and putting the Hill Brick Factory with a capacity of 120 million bricks/year in Ha Tinh into production, it will continue to invest in the Hill Brick Factory with a capacity of 50 million bricks/year in Khanh Son commune (Nam Dan).

Next, the company will invest in a construction materials production complex in Nghi Van commune (Nghi Loc) including a 50 million brick factory for hill construction per year and a factory for large-sized tile production; continue to invest in real estate projects such as the 21-storey building in Nam Nguyen Si Sach Urban Area, the N03 - T6 House project in the Diplomatic Corps Area, Hanoi; prepare resources to implement commercial housing projects on the land plots the Company is using...

Mr. Nguyen Ba Hoan - Director of Trung Do Joint Stock Company said: To be proactive in the new development phase, accelerate and be more sustainable, along with proactively converting production technology at factories according to the roadmap, the company is submitting to the 2017 Annual General Meeting of Shareholders for approval of the plan to increase charter capital. Accordingly, the company's charter capital will increase from the current VND 92.63 billion to VND 150 billion. This is one of the plans to implement the company's new business strategy, contributing to improving the company's business capacity, financial capacity and position; at the same time, to effectively utilize the advantages, attachment, long-term cooperation, and strategies of partners to serve long-term development.

Phuong Ha