Logo of Phnom Penh Post newspaper Phnom Penh Post - Royal Group gets exclusive steel deal from Posco

Royal Group gets exclusive steel deal from Posco

A building under construction near the Olympic Stadium complex.
A building under construction near the Olympic Stadium complex. Vireak Mai

Royal Group gets exclusive steel deal from Posco

Yong Sheng Global Trading, a subsidiary within the Royal Group conglomerate, signed an exclusive partnership agreement with Posco SS-Vina, a Vietnamese-based steel company, for exclusive distribution rights of construction materials on Tuesday.

The signing of the agreement took place between Kith Meng, chairman of Royal Group, and Jung Son Kyu, chief marketing officer of Posco. Posco SS-Vina is owned by the South Korean steel giant Posco Group.

The framework gives Yong Sheng Global Trading full rights over all of Posco SS-Vina steel products imported from Vietnam.

Raymond Cabreara, marketing manager of Yong Sheng Global Trading, said this was not the first time the company had partnered with construction suppliers to fuel the property boom.

The company had previously signed an agreement with TPI Polene Thailand – the country’s third-largest cement supplier and a producer of rubber and vinyl products.

“With the continuous rapid growth and development in Cambodia, the company is diligent to provide high quality and world class construction materials,” he said.

Sach Sotay, purchasing officer at Chip Mong Group, said the demand for steel continued to flourish on the back of high-rise developments, and that the Kingdom had been flooded with suppliers.

“There are varieties of steel imports trying to compete in the market, but so many that it makes it difficult to sell,” he said. According to him, Chip Mong Group imports steel primarily from Thailand, Vietnam and China.

According to data from the Ministry of Commerce, official steel imports have actually declined over the last two years despite the construction frenzy. The Kingdom imported 412,833 tonnes of steel worth $281 million in 2014. In 2015, imports slipped to a total of 265,408 tonnes valued at $167 million.

“The fluctuation of steel is linked to the construction market demand,” said Soeng Sophary, spokesperson for the Ministry of Commerce. She added that more steel players spelled a better deal for consumers looking to save on cost.

“The trend of the market is to benefit the consumer. When a supplier meets the competitions quality and prices, consumers have more choices.”

MOST VIEWED

  • Kingdom’s domestic milk still cannot compete with imports

    Price competition and a lack of confidence by consumers are the main reasons the dairy market cannot compete with imports, said domestic milk producers. The large displays of imported fresh milk at the Kingdom’s supermarkets present a cumbersome obstacle for local producers, they said.

  • ‘Pesticide-laden cucumbers’ kill two, poison 150 in Banteay Meanchey

    At least two youths have died and 243 others are being treated for vomiting, diarrhoea, breathing difficulties, dizziness and muscle weakness after they ate cucumbers suspected to consist of pesticides. The incident happened on Saturday, said Banteay Meanchey provincial police chief Ath Khem. He told The

  • Three dead, 13 injured in collapse at Siem Reap pagoda

    At least three people were killed and more than 10 others injured on Monday after a dining hall under construction collapsed at Prasat Kokchak pagoda in Kokchak commune, Siem Reap province. Provincial police chief Tith Narong said Military Police, soldiers and local volunteers had successfully recovered 16

  • Forest Harmony’s $18M luxury villas break ground in Kampot

    Local and French joint-venture Forest Harmony has broken ground on its $18 million “second-home” Luxury Holiday Villas project in Kampot province. Century 21 Mekong CEO and local shareholder of the project Chrek Soknim told The Post that the project will comprise 90 villa units covering 18ha on a 97

  • China Unicom enters Cambodia

    China Unicom, the country’s largest telecoms operator, has expanded into Cambodia to build optical telecommunication pathways in the Kingdom as part of the Belt and Road Initiative (BRI). The Hong Kong-listed company officially opened its China Unicom (Cambodia) subsidiary on Monday to become the

  • PP-SHV Expressway on track for completion in early 2023

    The construction of the $1.9 billion Phnom Penh-Sihanoukville Expressway, which broke ground at the end of March, is on track to be completed by early 2023, Ministry of Public Works and Transport spokesman Vasim Sorya said on Monday. The 190km high-speed highway linking the capital to the