LILAMA’s new direction in labour services export

By completing the manufacturing and installation work for the Project on A/U Fertilizer Factory in Brunei Darussalam, Lilama Corporation has set the scene for new way on package labour services exporting in the mechanical field.

Supply the package labour services overseas

The Contract on A/U Fertilizer Factory Project signed between LILAMA Corporation and the EPC Contractor – Thyssenkrupp Industrial Solution AG should be implemented in 23 months (from December 2018 to October 2020), in which Lilama performed all mechanical works including the painting and insulation. At the present, the package of steel structure has gained 98%, tanks and vessels manufacturing 90%, pipe installation 80%, painting work 60%, and insulation 30%... According to the LILAMA Project Manager Mr Dang Thien Thuat, all above works shall be completed on schedule except the insulation in delay and referred to “Force Majeure Clause” due to the epidemic Covid-19 leading to the ceases of labour lisensing from Brunei side and commercial flights between the two countries. Dealing with this circumstance, Lilama informed the EPC Contractor, and both sides have been discussing for its schedule revision.

Besides, during the Project process in an Islamic country as Brunei, the most difficult and challenging thing was the labourers mobilization and management. For particular, Lilama had built up and carried out a detail plan of necessary activities such as applying for labour visas and lisences; mobilizing human resources relevant to the work volume and need of the project for each package’s period of time at site in order to optimize the relating costs and expenses like salary payment and logistics; disseminating Bruneian laws to labourers and complying with the Islamic traditions and customs; facilitating living conditions and serving Vietnamese tasted food for reproducing labour power (i.e over 40 Vietnamese chiefs and cooks in this project recruited by Lilama); human management on site and in accommodation,…

Generally saying, the A/U Fertilizer Factory Project is very different from the previous ones done by Lilama for it has marked a significant milestone on the overseas mechanical construction in which Lilama provided the package services including: materials supplying, human resource mobilization, equipment arrangement, and execution. According to Mr Le Van Tuan – Lilama President & CEO, the requirements on the quality, the schedule and especially the safety of this Project were quite high and strict during the whole process. In the highest time, a number of labourers working in manufacturing and installation were up to 1,600 ones, which were mobilized from LILAMA sub-companies, particularly from two Lilama 69.1’s subsidiaries including Bac Ninh Steel structures fabrication and equipment manufacturing factory and Pha Rung Equipment Fabrication Workshop (in Hai Phong city). These units owned the experienced engineering teams who devoted to induce grey contribution into their products through process designing, shop-drawings coding, bill of quantity estimating, materials cutting and fabrication supervising. All these mechanical products supplied for the A/U Fertilizer Factory Project were highly appreciated for the accuracy, satisfying the strictest requirements on quality, schedule and safety which made up the success of the Project.

Readiness to join deeply

Mr. Thuat said that, the A/U Fertilizer Factory Project in Brunei was the one that Lilama has literally performed with internal force itself. In order to achieve this Contract, Lilama had taken comprehension all relating information in procedures and developed steps within the scope of work logically such as researching the Brunei construction market and relating legal papers during bidding process; establishing the representative company as a legal entity in the home country under Bruineian Laws for signing contract with the EPC Contractor and those with other sub-contractors on supplying construction and services; applying for labourers’ visas and labour lisenses; carrying out all logistical activities such as human resource mobilization, living conditions arrangement for labourers; cargo shipment for materials from Vietnam and other regional neighbours to Brunei for the large sized equipment like huge cranes of 50T, 250T, 600T  and 1,600T; procuring and importing the main materials (i.e insulating accessories and painting) and casting folders… to Brunei; performance management on site. As the result, the biggest achievement for Lilama from the Project is the valued experience in organization and management on constructing project overseas, removing the hesitancy and raising up the self-confidence in expanding business outside the country.

At the present, Lilama has received the highest appreciation for its performance and met the requirements on quality, schedule and safety in the A/U Fertilizer Factory Project from the EPC Contractor Thyssenkrupp.  Mr Tuan shared that, after completing successfully this project, Lilama shall promote exporting services on labour and construction as the new direction of development in mechanical field with more overseas package contracts signed, in which multi-activities like making estimation, salary payment, mobilizing equipment and labourers, organizing livings conditions for them,… shall be supplied. From the beginning of the Project, Lilama just aimed at getting experience, not profit and think that a draw is a win. It can be said that Lilama are sure to earn “the compound interest” of both experience and income from it. For further illustration of the new direction, Lilama 18 JSC (a Lilama’s sub-companies) are now negotiating for a contract on building a power plant in Banladesh. In the comming time, Lilama shall mainly develop and increase the value of exporting package services on labour and construction.

Minh Thành