An eye for opportunities

EVEN as the world continues to reel from the impact of Covid-19 and its strains, AllAlloy Dynaweld has never stopped being on the lookout for opportunities.

This year, the welding and distribution company has its sights set on safety tool and equipment manufacturing under a new subsidiary, AllAlloy Safety, set up in February this year.

The idea first came about when general manager Victor Khaw noticed how many of the workers in the welding industry, particularly those involved in manual labour, were exposed to many risks due to the nature of welding work. These include risks of breathing in harmful gases produced during welding work, as well as physical safety concerns from welding metals while suspended above ground during construction activity.

He then discussed the idea with a long-time friend cum ex-colleague Phillip Chan, who seconded his goals to diversify the business into equipment manufacturing.

"Welding, especially, is seen as dangerous work... building things and working from very high places," said Chan.

"We saw how our friends and brothers tended to shun this industry, which is not very healthy."

A NEWSLETTER FOR YOU

Friday, 8.30 am

SGSME

Get updates on Singapore's SME community, along with profiles, news and tips.

Sign Up

Sign Up

With their minds set on improving the conditions of workers involved in welding work, Chan officially joined the company late last year to head its new subsidiary as general manager, and oversees the production of safety tools and equipment such as full personal protective equipment suits and fume extractors.

While the new business segment is barely a year old, it is already doing well enough to supplement its overall revenue, which has taken a hit over the past 2 years due to Covid-19 and other factors.

The region's rocky ride

The 14-year-old business had experienced some of its most rocky periods when the pandemic hit in late 2019, when countries declared a state of total lockdown and factories were ordered to shut for weeks that stretched into months.

Khaw said that for a period of 3 months, its yard in Malaysia incurred losses due to widespread factory closures.

"In Singapore, when we say shut down, most of the yards are still running, whereas in Malaysia, a shut down is really a shut down," said Khaw.

"We practically did not have sales for 3 months."

Further adding to the company's woes were the political instability in Myanmar, where AllAlloy also holds an office in.

Coupled with the added pressures from Covid-19, Khaw said he had almost given up on doing business in the strife-ridden country.

But the director eventually decided against it.

"The staff there... they're like family. If we pull out suddenly, they will have no income. To have no income at this point in time... it's really terrible," said Khaw.

To salvage both the business and its employees in Myanmar, the director took to minimising costs by ceasing some of its current leases and storing all its goods in an outsourced warehouse.

This, Khaw says, has allowed the company to keep its Burmese employees on the payroll, while at the same time balancing its profit and losses.

Against all odds, AllAlloy's business arm in Myanmar continues to be profitable - an effort Khaw takes no credit for, but instead attributes to his team of employees.

Teamwork makes the dream work

"People. One hundred percent our people. (They are) The first, the second and the third," Khaw said in response to a question on what he thinks drives the business' success.

Together with the team at AllAlloy - a group whom Khaw alludes to as family - the director is already thinking of the next steps for expanding its business.

Within the next 3 years, the firm has its targets set on making an entrance into Thailand and Vietnam, where Khaw believes hold the most opportunities and potential for his business.

In fact, the company is already working towards its goals - starting with its new line of safety equipment and products as a test bed for expansion.

This will, however, rest on the smooth reopening of borders as inoculation picks up its pace among various countries in the region, said Khaw.

"I hope that in 3 years' time our offices overseas such as Vietnam will be fully operational and profitable... and that we will be able to see each other face to face once more."