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A Call for Consolidation in South East Asia (Part II)
Source: SEAISI
Last month we have raised some potential hurdles to have a more consolidated steel industry in
Marketing consolidation
This is a logical strategy to improve competitive position in their home region. A marketing consolidation is a step to broaden business scope and to merge competencies. The move also means to have a stronger position relative to much larger competitors and to avoid a cut-throat competition among the region's steelmakers. They can serve the customers better by providing a wider range of product types and specifications. Many of the customers demand wide range of product size and specifications thus steel products from more than one company would serve them better. Joint marketing will also make production management more flexible and less excess of finished steel inventory that can not be sold.
Procurement consolidation
The production and material management functions of a steel company have several strategic objectives. The most important one is to lower the costs. However, it has been difficult for small
A soft consolidation is perhaps a more realistic way to start a consolidation process among