The industrial and supporting industries are currently among the sectors receiving significant attention from the government. Notably, investing in the development of a steel factory holds substantial potential. However, investing in this industry not only provides opportunities but also poses various challenges for businesses. Firstly, business owners must address the question of what are the CONDITIONS TO OPEN A ROLL FORMING MACHINE FACTORY? Particularly, understanding how to establish a profitable steel rolling mill is far from straightforward. Therefore, in this article, Vietsteel will share experiences to help business owners tackle these challenges. Go with Vietsteel to the secrets of crucial factors when establishing a roll forming machine factory.
Why Business Owners Should Open a Steel Rolling Forming Machine Factory?
Firstly, one notable aspect is the average growth rate of value-added (VA) in the industry during the 2016-2023 period, which is estimated to increase by 7.16%. This surpasses the set target for the 2016-2023 period, ranging from 6.5% to 7.0% annually. The government, in particular, has implemented measures to boost public investment, a significant driver for current economic growth. Moreover, the demand for steel is positively influenced by the recovery of the real estate and housing markets. The steel industry is highly regarded with many optimistic signals for long-term development.
Furthermore, establishing a steel rolling mill workshop brings numerous potential benefits to business owners, especially in terms of high economic returns that can yield substantial profits for investors. This is driven by the upcoming market development trends. In Vietnam, there is a substantial demand for roofing sheets, protective panels, and other steel products across various scales, from households to large construction sites. Additionally, the associated benefits include
Cost Reduction and Profit Optimization
By managing the entire process from production to operation, business owners can minimize intermediary costs, optimizing profits.
Instead of purchasing finished steel products from another supplier, business owners can independently oversee the entire production process, efficiently managing all stages and maintaining flexibility in the supply chain for raw materials and finished products. This allows active control over delivery times, ensuring a strategic position in the supply chain. Profits are thus maximized when producing products in-house.
Long-term Investment, Easy Business Expansion
Investing in a steel rolling mill workshop is a long-term investment that generates high profitability, facilitates quick capital recovery, and ensures sustained growth. This enables businesses to easily expand their operations by establishing additional workshops or becoming a supplier for other partners. Importantly, businesses can invest in creating aesthetically pleasing, exclusive designs, master technology, and set market trends.
Significant Labor Savings
One of the undeniable benefits is that the steel rolling mill workshop utilizes automated production lines, resulting in significant labor savings. This helps businesses reduce the burden on labor costs.
While the production of steel is not overly complicated, manual production can be challenging. Although manual production is not impossible, for large steel sheets, producing tens or hundreds of square meters, manual production is only suitable for those willing to expend time and labor extensively.
Effective Tips for Opening a Profitable Steel Rolling Mill Workshop
To open an efficient steel rolling mill workshop, business owners need to pay attention to various factors such as location, business premises, suitable steel rolling machines, budget for workshop setup, and other legal considerations.
Location
Accessibility
Choose a location with convenient transportation, preferably near major roads for easy steel transportation. It should accommodate large vehicles such as trucks or containers for seamless entry and turning.
Space and Terrain
Ensure that the workshop location has ample space and is suitable for the installation of various required machines. The terrain and building surface should be suitable for easy workshop setup.
Cost Savings
Consider locating the workshop in areas outside major city centers, more than 10km away. This can help save on rental costs and provide sufficient space for the workshop.
Business Premises
Spacious and Suitable
The business premises should be spacious to accommodate the machinery required for steel rolling. The layout should be suitable for the installation of machines and support efficient workflow.
Ventilation and Environment
Ensure a well-ventilated environment to prevent discomfort for workers. Ideal business premises for steel rolling should be spacious, maintaining environmental hygiene and not affecting the surrounding areas. Avoid densely populated residential areas. These considerations are crucial for setting up a steel rolling mill workshop that is not only efficient but also complies with environmental and legal standards.
Choosing the Right Type of Steel Rolling Machine
There are various types of steel rolling machines, and business owners can choose the one that suits their budget and business scale.
This type of machine has a reasonable price, making it suitable for those starting a steel rolling workshop. It offers popular and widely used profiles. There are various speed options such as 20 meters/minute, 25 meters/minute, 30 meters/minute, 35 meters/minute, 40 meters/minute, and the fastest being 60 meters/minute. Investors can choose the machine speed that aligns with their needs and investment costs. Common profiles include 6 waves and 11 waves. Square wave roofing is popular in many construction projects, making it profitable for new workshop owners.
This machine can be combined with a roofing roll forming machine to diversify business offerings. It creates curved roof vaults used in awnings for sun and rain protection. Moreover, it is flexible and can be used for bending curved truck and container decks.
Step Tile Roll Forming Machine
This machine produces aesthetically pleasing profiles, easy to use, and is popular in architectural projects for its high aesthetic appeal. It is a machine line for investors to consider for innovative and exclusive product creation, bringing novelty and trends to the market.
Double Deck Roll Forming Machine
This machine is equipped with two different profile forming stages, such as one for square waves and one for tile waves. It is a space-saving and labor-efficient machine, easy to use and operate. It optimizes workshop space and labor, offering versatility in production.
CZ Purlin Combination Roll Forming Machine
This machine saves workshop space and labor by producing both C and Z profiles. It offers over 20 different sizes, and the size and profile changeovers are fully automated, requiring minimal effort and labor. This is one of the most popular machines in the current market.
Choosing the right type of steel rolling machine depends on the business’s specific needs, budget, and production goals. Each type offers unique advantages, and the selection should align with the market demand and business strategy.
Estimated Budget
The budget for each workshop varies based on its scale and the business’s financial capacity. The level of investment determines the estimated budget when establishing a steel rolling mill workshop. A modern, professionally equipped workshop with a comprehensive system will enhance production efficiency for the business.
Workshop Investment Budget
There are no strict regulations on the minimum square meters required for a workshop. However, businesses should consider that a workshop equipped with full facilities, ventilation, and a processing system will contribute to more effective operations.
There are two investment options for workshops
New Construction
This option is popular for pre-engineered workshops. However, businesses may consider constructing a lightweight steel technology workshop to save costs and construction time.
Renting a Workshop
This option is suitable for the initial period to stabilize production and revenue. It is appropriate for short-term plans. Regardless of the square meters, businesses should choose reputable workshop rental units.
Machine Investment Budget
Regarding machine investment, businesses can choose the number of machines that align with their budget. Depending on the available budget, careful consideration of market trends is essential to achieve optimal efficiency. Additionally, businesses can refer to some machines recommended by Vietsteel.
In summary, the workshop investment budget and machine investment should be aligned with the business’s financial capacity and long-term goals. Thorough research and consideration of market trends will contribute to the optimal utilization of the investment.
Other Considerations
Legal Aspects
Business Purpose and Legal Representation:
Clearly define the business purpose, available capital, legal representative, and production scale. Choose to operate as a business entity or as an individual business owner.
For Individual Business Owners
Prepare necessary licenses, such as the production establishment license (including personal information and documents for registration).
For Corporate Production
Obtain a business registration certificate, an investment registration certificate for business establishment, and product-specific operating licenses (sub-licenses). Additionally, fulfill procedures to confirm compliance with environmental and fire safety conditions when opening the workshop.
Human Resources
Training and Staffing
Depending on the investment scale, businesses should train an appropriate number of personnel. However, labor costs are not low, and resources are limited. An effective solution to save labor while ensuring production efficiency is investing in automatic machines. Choose durable machines to save on warranty and maintenance time.
Vietsteel’s Solution
Vietsteel is a reputable supplier of steel rolling machines in Vietnam. Investing in Vietsteel’s machines, equipped with modern and advanced technology, can save significantly on labor costs. With a machine durability of up to 15 years, businesses can optimize productivity with only 1-2 operators. Vietsteel also provides installation assistance and operation training for personnel, ensuring a smooth transition for those using the machines for the first time. Additionally, Vietsteel offers direct online support 24/7 to address any technical issues businesses may encounter.
Investing in quality machines from Vietsteel can enhance production efficiency and minimize concerns related to labor costs and technical support.
Starting a Steel Rolling Workshop – Contact Vietsteel for Expert Guidance
Opening a steel rolling workshop, especially for newcomers, may pose various challenges, and business owners likely have many questions and uncertainties. For comprehensive support and to share experiences on establishing a successful steel rolling workshop, businesses can reach out to Vietsteel.
How Vietsteel Can Assist
Clarifying Doubts and Concerns
Vietsteel can address any doubts or concerns that businesses may have regarding the process of opening a steel rolling workshop.
Detailed Consultation on Various Aspects
Vietsteel provides detailed consultation on aspects such as budgeting, costs, and suitable machine types that align with the business’s budget.
Experience Sharing
Benefit from Vietsteel’s wealth of experience in the industry, gaining insights and practical tips on running a profitable steel rolling workshop.
Get in Touch with Vietsteel Machinery
Hotline: +84 906 898 860
Email: vietsteel@vietsteel.com
Contacting Vietsteel will provide businesses with the guidance and information they need to navigate the challenges of starting a steel rolling workshop successfully.