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Nico Steel forges ahead with new higher-margin strategy

Steel News - Published on Wed, 12 Dec 2018

Image Source: Businesstimes.com
Business Times reported that a strategy shift to focus on products that command higher margins on lower volumes has borne fruit for metals supplier Nico Steel, as its net profit recently soared to USD 121,000 for the half-year ended Aug 31, up from USD 1,000 a year ago. Mr Danny Tan executive director and president told The Business Times that this is the result of efforts over the past few years to phase out its lower-value-add processing services of producing commercial metal materials for hard disk manufacturers, and focus instead on customised solutions. He said that "It is always our philosophy to keep innovating and offering higher- value-add solutions to meet the evolving requirements of our customers.”

Mr Steven Tang, Nico Steel's executive director who heads the marketing and product innovation division, noted that the old business of selling low-value-add metal materials to hard disk manufacturers yielded low margins for the company, since the processing services they provided were commonly available.

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Posted By : Nanda Koijam on Wed, 12 Dec 2018
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