The right blend of steel and service for Fusionopolis

22 Sep 2005

Corus International Asia's major supply contract for Singapore's newest landmark project.

Orders for 12,000 tonnes of sections from Teesside and Scunthorpe, 4,000 tonnes of plates from Scunthorpe and Dalzell, and 200 tonnes of SHS from Corby have been placed through Corus International Asia for the majestic twenty-four storey Fusionopolis project, a multi-user information and communication technology exchange now under construction in Singapore and due for completion in 2007.  Working closely with client JTC Corporation, its main project team and Design & Build Contractor Shimizu Corporation from an early stage, and subsequently following the placement of contracts for steelwork, fabrication and erection with Yongnam Holdings Limited, the Singapore team were able to provide their own communications bridge for sourcing and supply right along the line.

Discussions between the team and JTC began in February 2003 when the high profile development was announced and identified by Corus International Asia as a “must get” project.  First tender was called in February 2004, with only six weeks to prepare, and steel prices, at the time, were deemed to be high.  The second tender closed in the following November when prices were slightly lower but still over budget.  In April 2005, before the award of the steelwork fabrication and erection package to Yongnam Holdings Limited by Shimizu Corporation, the first 400 tonnes lot of sections was booked with Shimizu Corporation and full support provided from Corus on specifications, rolling schedules, Z-testing and low sulphur steels.  This initial effort proved crucial in discussions for the later package from the fabricator, and by the end of May the entire package had been booked with the first lot of steel arriving Singapore in July and an agreement reached with Yongnam to supply material for the entire project by December 2005.

In the hard fought contest for this prestigious contract, as Sales and Technical Manager - Structural, no one could be more pleased at the outcome than Bernard Chung.  His analysis of the conditions and events that formed the background and environment to the handling of the project reveals many of the key features that led to the way the business was landed and is currently nearing a successful conclusion:

“Our main competitors were Japanese traders and European and Asian mills but we were known to Shimizu, having worked with them closely on their Changi International Airport Terminal 3 project which is still on going.  And, of course as major contractors, they are aware of our track record for meeting tight schedules and our ability to provide cut length material and piece-count orders.  The Singapore office worked very closely with all the fabricators who were bidding for the project, both local and overseas including companies in China, Thailand, Malaysia, Indonesia and the UK whilst at the same time staying in close touch with colleagues in the appropriate Corus International regional offices.

There were many contributory factors to our success.  These included not only our good business and working relationships with main and sub-contractors, but also the trading conditions that applied during our project negotiations when global steel supply was becoming more stable compared to that of early 2004.  Currency exchange rates too, in the second quarter of 2005, were favourable and financial arrangements were also in place to enable a tripartite contractual set-up between Corus International Asia, Yongnam Holdings and Shimizu Corporation.  But, underscoring these commercial considerations, the fundamental bread and butter issues of having the right products, to the right specifications, available at the right time and the ability to deliver them when required were all critical to the outcome and Corus mills were fully supportive throughout the project.”