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.”