S-Tec System Co., a leading manned security company in South Korea, is aggressively expanding its business overseas mainly in the fields of fire prevention and pest control.

S-Tec VINA, its Vietnamese subsidiary, has seen exceptional growth since its establishment in 2018, achieving an annual revenue growth rate exceeding 50 percent and reaching over 10 billion won ($7.5 million) in orders last year.

In 2021, the company was selected as the authorized product certification agency for Vietnam’s fire authorities, securing a prominent position where all fire prevention products entering Vietnam must pass S-Tec VINA’s certification tests.

These achievements can be attributed to the company’s focus on local production and R&D in Vietnam, cost competitiveness, and differentiated after-sales service.

The strengthening of fire safety regulations within Vietnam has also played a pivotal role in S-Tec VINA’s success.

Recent developments in Vietnam have made it mandatory to install fire suppression systems in high-rise apartments, factories, power plants, data centers, and other high-risk facilities in the event of a fire.

Data centers, in particular, require fire suppression systems as traditional water-based methods are not suitable for such environments. Notably, local factories of well-known Korean companies like Samsung Electronics and LG Electronics as well as large buildings like Lotte Mall are among S-Tec VINA’s major clients.

The company’s factory is located in the Dong Van IV Industrial Zone in Kim Bang, Ha Nam Province, about 50 kilometers south of Vietnam’s capital, Hanoi, where it manufactures fire suppression gas cylinders.

The fire suppression gas cylinders produced here are being supplied to various large-scale facilities in Vietnam, a factory manager told Maeil Business Newspaper.

After recording 2 billion won in revenue in 2020, S-Tec VINA continued to grow, reaching 3 billion won in 2021 and 7.5 billion won last year. This year, with an expected revenue of 10 billion won, the company is even considering its first dividend payout.

With a dominant market share of 90 percent in the Vietnamese fire suppression gas market, Vietnam is a strategic gateway for S-Tec System’s expansion into Southeast Asia.

The company has already ventured into Laos and Cambodia and is currently in discussions for product deliveries with buyers in Myanmar.

S-Tec System is not limiting its success to fire prevention alone. It is also attempting to replicate its achievements in the pest control and sanitation services sector.

As Vietnam experiences rapid economic growth, businesses and consumers alike are increasingly valuing hygiene and pest control.

In October last year, S-Tec System established a joint venture with FISA, a Vietnamese company, which specializes in providing pest control services and supplying products such as insect traps and air purifiers.

The joint venture has already secured clients such as Hanoi Lotte Building, Lotte Aquarium, and A25 Hotel. It is expected to reach its break-even point next year.

2023.10.24
Maeil Business Newspaper
https://n.news.naver.com/mnews/article/009/0005203958