Creation of Consortium
Some large scale projects require an important quantity of steel to be produced and shipped in a short time interval to fulfill the limited project schedule. In such specific cases, a single producer is not able to satisfy the total project requirements alone.
With the idea of creating a production power, combining the reliable producers having proven continuous quality and many years of experience in production and export of steel products at highly competitive conditions, EHSD, depending on the requirements of the specific project, took the initiative and the leadership, and formed in various occasions Consortium, with the participation of reliable steel manufacturers.
Each and every consortium member is carefully selected by their compliance to EHSD Compliance Criteria (ECC).
By the formation of consortium with selected qualified members, EHSD ensures the required quality product is delivered in the required time interval as per the project deadline.
EHSD, in order to have regular, uninterrupted supply flow, enters in tolling arrangements with specifically selected steel manufacturers. Such steel manufacturers are selected as per EHSD Compliance Criteria (ECC) considering their past production and export performance and justified product quality.
In a tolling operation, EHSD supplies the required raw materials, provides financing, continuously monitors and supervises the production process and offtakes the manufactured goods and delivers them to the final end user.
The tolling operations are also useful for EHSD to have controlled cost product supply as all the process cost starting from raw material sourcing to the shipping and delivery upto the end user is executed under EHSD’s close supervision and control.
In some specific cases, EHSD selects some steel manufacturers to work for EHSD for a defined time interval as its subcontractor. EHSD’s subcontractors are selected as per EHSD Compliance Criteria (ECC). The difference of subcontracting from tolling operations is that in subcontracting the complete supply package is trusted to the qualified subcontractor without any involvement of EHSD for raw material supply or financing. However the close supervision of the production quality and supply chain until the completion of delivery is still within EHSD’s full control and responsibility.
The major advantages of the formation of Consortium/Tolling Operations/ Subcontracting to EHSD’s customers can be summarized as:
- High production and supply capacity
- Continuous, high and assured quality of product through continuous supervision and control of EHSD
- Timely production and delivery
- Lower cost and wastage through precise process control