SQC Investment (SQC), an associate company of Sing Swee Bee Group (SSB Group), has signed an agreement with Osaka Gas Liquid (OGL) to strengthen the company’s position and accelerate growth in the Vietnamese industrial gas market.
The agreement includes a capital injection from OGL, who will provide specialised technical support to Sing Industrial Gas Vietnam Company Limited (SIGVN), a wholly-owned subsidiary of SQC, to enhance its plant’s overall operational efficiency.
SIGVN, one of the leading industrial gas suppliers in Vietnam, has been serving the gas and energy market since 2012.
With a manufacturing plant in Binh Duong, SIGVN is able to supply industrial gases such as nitrogen, oxygen and argon, and respond to the customer’s needs effectively and on time.
Throughout the years, SIGVN has expanded its business portfolio by providing sales and leasing of ISO tank to customers, as well as the production of dissolved acetylene and sales of specialty gases such as ammonia, helium, hydrogen, hydrocarbons and refrigerants for air-conditioning applications.
Vietnam has been achieving sustainable economic growth and industrial gases have been widely used in various industrial sectors such as preventing combustion (Purge Gas), food oxidization (nitrogen), welding, medical gases (oxygen) and carbonated beverage (carbon dioxide).
According to the Gas Review, Vietnam’s industrial gas market has grown steadily over the past few years. The market size in 2018 was about YEN 12-16bn ($112-150m), with an annual growth rate of 6-7%.
With an anticipated growth in the coming years, both SIGVN and OGL will carry out joint feasibility study on the possibility of expansion in Vietnam to handle the increasing demand of industrial gases.
The capital injection from OGL will fund technology development and improve the current plant’s overall capability through OGL’s leading-edge engineering solutions that are safe, reliable and environmentally friendly for the customers.
In addition to the agreement, SSB Group will explore opportunities with both OGL and Osaka Gas Group companies (Daigas Group) on small-scale LNG transportation and regasification projects in Southeast Asia.
The companies will share its technical and commercial information, skill and know-how, and are committed to expand and develop LNG-related solutions in the region.