The Situation

Find a cost effective way to source raw materials and identify and support new sales and distribution channels for its broad range of mineral products in Vietnam at the lowest cost possible

  • Founded in 1927, AMCOL International Corporation is a leading producer and marketer of diverse specialty materials with a core expertise in bentonite and other industrial minerals and polymer science.
  • Through four business segments AMCOL creates solutions for the paper, foundry, steel, environmental, energy, polymer and consumer products industries.
  • Amcol needed to find a way to:
    • identify new sources of bentonite clay and anthracite coal for its processing operations in Thailand, and;
    • establish sales and distribution channels for its multiple value-added products in Vietnam at the lowest cost possible since it did not have sufficient budget to invest in its own representative office or wholly-owned subsidiary.

The Project

Utilizing Tractus’ Business Inc.ubator® afforded Amcol with an on-the-ground presence, dedicated staff and experienced market entry support without having to establish its own Vietnam legal entity

  • Amcol utilized Tractus’ Business Inc.ubator® in Vietnam to hire a dedicated Commercial Coordinator to manage its sourcing, regulatory and business development needs in Vietnam.
  • Tractus helped develop the job description and led a selection process to recruit the appropriate candidate.
  • Tractus also developed a business development program implementation plan with objectives and execution milestones for the new Commercial Coordinator to follow.
  • The first part of the engagement focused on supervising the Commercial Coordinator’s efforts to map and identify potential suppliers of anthracite coal and bentonite clay throughout Vietnam.
  • The second phase dealt with implementing Amcol’s Vietnam business development plan.
  • Tractus provided management oversight to achieve goals such as product registrations with relevant Vietnam ministries, environmental compliance approvals and other regulatory licenses required for the products to be imported and distributed in Vietnam.
  • The final part of the program included business development activities that targeted key customer sectors including foundry, construction, detergent and fertilizers.

The Solution

Low cost and rapid market entry, success in sourcing anthracite coal at competitive cost and initial sales of over US $500,000 of high value products within the first 24 months in a highly cost competitive market

  • Utilizing Tractus’ Business Inc.ubator® in our Vietnam office, the company hired a sales representative and quickly established a distribution network.
  • Sales revenues grew from zero to US $500,000 within 24 months.
  • Established sales and distribution channels with revenues in three key segments including foundry, construction, and detergent
  • Completed field test for the legal registration of a product for the fertilizer market.