Revealing the strong growth of plastic pipe business upstream of the pandemic

[Dân trí Newspaper] EUROPIPE’s success lies not only in its sales figures and good results but also in how this business adapts amid the pandemic, reaching out strongly.

Upstream between Covid 19

Outbreak since 2020, the Covid-19 pandemic has created an unprecedented and challenging business environment in Vietnam and the world. The far-reaching effects of this pandemic, the commodity price cycle, and instability in international politics have a direct impact on domestic and foreign businesses.

Right from the first quarter of 2021, after a year of enduring the effects of the epidemic, businesses have faced many difficulties due to the closure of borders between many countries, unsettled international trade, and disruptions. supply chain makes the cost of input materials become expensive…

Entering the second quarter of 2021, the first cases of the fourth Covid-19 epidemic with the Delta mutation further eroded the health of the business. According to a report at the end of September 2021 by the General Statistics Office, more than 61% of processing and manufacturing enterprises faced more difficulties in production in the third quarter than in the second quarter, and nearly one-third of enterprises in Vietnam did not meet the deadline. We were expected to do business in the fourth quarter of 2021.

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By the end of 2021, nearly 120,000 businesses will withdraw from the market, and on average, nearly 10,000 businesses will close every month (an average of 330 businesses/day). 2021 is a rare year that the number of businesses withdrawing from the market exceeds the number of new establishments, showing the comprehensive difficulties of the economy before the epidemic.

However, the business world also said that if viewed positively, the Covid-19 pandemic is considered a strong screening of businesses and units that have not yet adapted to the environment and have weak “resistance”. The fact shows that besides businesses withdrawing from the market, there are still many businesses that maintain their position, creating a bright spot in the midst of the pandemic, especially those that know how to actively create and build an ecosystem. products and governance models towards sustainable development, of which EUROPIPE is a typical example.

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6 keys to success

According to a EUROPIPE representative, the company’s success in 2021 is not only in its impressive revenue figures but also in the company’s internal changes, from proactive supply to increased automation capabilities. factory, strongly applying digital transformation with the highest goal of always keeping the best product quality and putting the interests of customers and partners first.

In the midst of the Covid-19 epidemic, the cash flow of most businesses was stalled due to a lack of orders, difficulty in getting loans, and inability to expand production as planned. A survey in August 2021 by the Private Economic Development Research Board (Board IV) showed that 40% of businesses temporarily suspended business because of Covid-19 only had enough money to maintain operations for less than 1 month. That shows that having a good financial foundation will be the basis for businesses not only to maintain operations but also to seize opportunities for strong development.

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This is true for EUROPIPE when possessing the advantage of being a piece of the AMACCAO Group’s ecosystem, which also means owning the first key to EUROPIPE’s success today. The solid financial foundation from the parent corporation helps the company to have the cash flow to facilitate signing cooperation agreements with a series of strategic suppliers, ensuring an adequate supply of input materials and maintaining expansion and improvement. high production efficiency. Together with other businesses in the AMACCAO Group, EUROPIPE creates a supporting link between the business and the production of building materials, actively contributing to helping the Company overcome the low points of the market caused by social distancing and delaying progress at key projects when the epidemic is stressful.

The second is the outstanding production scale advantage and the impressive automation capabilities of the EUROPIPE factory. In addition to the financial foundation, the large factory scale and warehouse area at the factory located in Thai Nguyen has created a premise for EUROPIPE to improve production efficiency compared to many competitors in the same industry. The entire factory campus is planned on an area of 10 hectares. This is a rare factory in the industry with an initial investment of 30 million USD in Vietnam, built on the criteria of having world-class technology, equipment, people, and services. provides a full range of products with diverse diameters from 20 – 1,200 mm.

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In addition, recognizing early on the challenges that the epidemic may cause, EUROPIPE’s management quickly invested in improving factory automation with a robot system for vertical presses and automatic presses. motion. Along with the existing modern machinery system, the newly added robots have increased the specific working capacity at this stage up to 1.5 times. The presence of these “special workers” helps the factory no longer be passive during the time of shortage of workers when strictly implementing social distancing requirements, contributing to maintaining the operating circuit, and at the same time helping to reduce and minimize production costs. The whole large factory with hundreds of machines still works very smoothly and is operated automatically.

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Restructuring products and customers, and accelerating supply chain diversification are the third key to EUROPIPE’s success. Accordingly, improving production quality is done on the basis of deeper research on molds, making improvements, and fine-tuning to create more uniform and diverse products. Not limited to the thought of only maintaining the production of traditional products, EUROPIPE also boldly expanded the production of new products, uPVC pipes for telecommunications (a product group specializing in providing businesses deploying construction and installation). infrastructure works), UV-resistant PPR pipes, twisted ribbed pipes, a series of products with a thickness of PN16, especially producing non-standard products, products according to customer orders… diversifying products and reaching out to more customers, finding new markets at a time that few businesses dare to think of.

Fourthly, seize the opportunity, and quickly and effectively digitalize with careful preparation. No longer relying entirely on an on-site sales system, EUROPIPE quickly implements digital transformation in its own distribution chain. Increasing the application of technology in each stage from approaching, selling, and taking care of customers, to promoting efficiency through online sales channels on websites or on e-commerce platforms, EUROPIPE not only maintains its existing customer base but also access to many market areas as well as customer groups, areas that have not been provided before.

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Five is the strength of the uniform distribution system, spread across all regions. Thanks to good service quality, the extensive system of distributors ensures full and proactive operation regardless of day and night, and 24/7 response on online commerce platforms and websites to support customers. products that EUROPIPE has scored right in the most difficult period of customer service and product supply.

Sixth, in the midst of the pandemic, the steel spirit and bravery of EUROPIPE people in particular, and  AMACCAO  people, in general, are more evident. The experience, proactive response, and creativity of the team who have been with the business for a long time, which has been forged through previous crises, are now maximized in 2020 and 2021, which has brought great results. Sweet for business. It is like the gratitude of the employees when the company not only tries to maintain production to ensure jobs for workers but also brings Vietnamese quality products of European standards.

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The success of EUROPIPE is not surprising in fact, it is the result of the determination and continuous efforts of EUROPIPE people, from the leadership to each employee, so that the business can not only stand firm in the face of difficulties. difficulties caused by the pandemic, but also creates a premise for steady acceleration in the current new normal. With the lessons learned over the past 2 years, EUROPIPE is steadily moving forward, continuing to develop further when Vietnam’s economy is expected to flourish again in 2022.