Milestones on the development journey

After the country’s reunification in 1975, stemming from the need to promote the development of heavy industry, of which mechanical industry is the key, on April 25, 1980, Song Cong Diesel Factory (DISOCO) was established. The factory’s mission is to produce 50 horsepower diesel engines for 4-wheel tractors that are widely used in agricultural production. In addition, with a large billet making capacity, the factory can supply 10,000 tons of castings and 2,500 tons of forgings/year for on-site production as well as supply to other mechanical factories.

Right after the completion of construction and testing of production stages in 1986, the country’s economy had a turning point in its transition from a centrally planned model to a socialist-oriented market economy, requiring the factory to have a new approach in production and consumption of products. In 1988 and 1989, the factory produced about 500 D50L engines each year (reaching ¼ of the designed output). The demand for engines for large tractors suddenly changed, when agricultural production was organized on a household scale rather than concentrated in cooperatives. The factory had to meet the small demand for large engine products, while finding ways to manufacture smaller engines, and developing a variety of mechanical products to meet the demand at that time.

In 1990, the Corporation model was established to enhance cooperation and improve production efficiency through division of labor and specialization in a group of companies. DISOCO became a member of the Vietnam Engine and Agricultural Machinery Corporation (VEAM). On February 20, 1995, Song Cong Diesel Factory changed its name to Song Cong Diesel Company . On December 1, 2004, Song Cong Diesel Company was converted into Song Cong Diesel State-owned One Member Limited Liability Company.

During the period from 1990 to 2005, DISOCO adapted to the market mechanism. A series of products from marine engines used for river transport vessels based on D50 engines and marine gearboxes researched and manufactured by the factory itself, to a series of small engines of 6, 8, 13 horsepower were introduced to the market.

Notably, small diesel engines have been exported thousands of units each year to the Southeast Asian market. Small gearboxes for small boats, gearboxes for aquaculture, engine parts for large ships, parts for cement plants, parts for power plants and a series of other mechanical products create a diverse product picture reflecting the dynamism of the factory in the market mechanism.

In addition, DISOCO also utilizes its casting, forging, and mechanical capabilities to produce construction steel each year (from 1990 to 2009), supplying the market with more than 10 thousand tons to meet market demand during the period when the country’s steel production was not yet developed.

The Company’s annual revenue has been growing continuously. One of the Company’s successes is that it has determined the right direction in developing supporting industries. Up to now, DISOCO has participated in the global supply chain of partners, most of the Company’s major customers are the world’s leading mechanical manufacturers. The Company’s products meet both domestic and export needs.

In 2017, when the parent company VEAM was converted into a joint stock company (Vietnam Engine and Agricultural Machinery Corporation – JSC) with state capital holding the controlling stake, DISOCO officially converted from Diesel Song Cong State-owned One Member Co., Ltd. to Diesel Song Cong One Member Co., Ltd.

Results of investment and technological innovation

Continuous investment in technological innovation has changed the face of the Company since its establishment, thereby firmly affirming the Company’s position in the fiercely competitive environment both domestically and internationally. After 45 years, the Company’s initial investments have only left factories that require constant maintenance, with only a few casting, forging, and mechanical equipment invested in the 80s of the last century still in use.

The company successfully invested in a motorcycle crankshaft hot stamping line in 2006 and 2009, then continued to invest in a semi-finishing workshop for this product. Especially since 2006, the company’s products have achieved zero defect quality when delivered to customers. The result of this investment has helped the company grow continuously for many years and contributed significantly to the company’s production and business efficiency.

Identifying forging and casting products as the Company’s strength, the initial investment in Forging Workshop 1 with large hammers of 2T and 10T has been replaced by hammers of 63kJ and 80kJ, induction furnaces have replaced coal furnaces, and a 1000T stamping machine has been added while waiting for investment in larger stamping equipment (2000T or 2500T). The equipment for cutting and cleaning billets has also been fundamentally replaced. Foundry Workshop 1 has been thoroughly renovated by using medium-frequency furnaces, self-manufacturing mold making, casting and pouring equipment to completely replace the initial investment in space and technological equipment.

In particular, the Company has invested in an “Automatic green sand casting and pouring line” with technology transferred by Sinto Company (Japan). This is the largest automatic casting line in Vietnam with a capacity of up to 10,000 tons/year. The pouring speed of 30 seconds/mold ensures high productivity, maximum cost savings, which is the premise for DISOCO to provide good products at competitive prices.

Next to the Sinto molding line is the “Fire-proof molding line” of Taiyo Machinery, using foam molds provided by Taniguchi Plastic Company with environmentally friendly molding technology, capable of manufacturing products with complex shapes that other types of molding cannot do. The line has a capacity of 2,800 tons/year and is fully capable of expanding when customer demand increases.

For other investments, DISOCO advocates gradual investment to ensure operational efficiency and product competitiveness. Vertical CNC centers, multi-axis horizontal CNC, electrical pulse equipment, wire cutting machines, specialized processing, heat treatment, and surface treatment lines are added annually. Large energy-consuming service equipment such as circulating pump stations and central air compressor stations have been replaced and local supply equipment has been used.

When the parent company becomes a joint stock company, the charter capital of DISOCO is decided by the parent company. Investment capital is only within the charter capital, the replacement of technological equipment depends on depreciation capital. Large investments depend on the decision to increase charter capital.

By promptly grasping the increasingly deep integration trend, DISOCO has gradually applied management systems of modern business models. Management systems according to ISO9000, ISO14000, ISO50000, management tools 5S, Kaizen, Kanban are widely applied. In particular, in 2019, DISOCO successfully built and applied a quality management system according to IATF16949:2016 standard on quality management of auto parts production lines to be ready to participate in the supply chain for automobile manufacturers around the world.

The results of the investment are particularly evident in the supporting industry sector, when the Company has confidently joined the global supply chain and become the number 1 supplier of many Japanese, American, Italian manufacturers, etc. such as Honda, Toshiba, Piagio, Juki, Mikasa, Nakagawa, KYB, Todimax, Dorman Products, Inc, etc.

Speaking at the 45th Anniversary of DISCOCO Company , Mr. Nguyen Duc Tuan, Director of the Company affirmed that “The achievements over the past 45 years are thanks to the attention and support of authorities at all levels; the close direction of the Board of Directors of Vietnam Engine and Agricultural Machinery Corporation; the trust, companionship, cooperation and support of customers and partners; and more especially the dedication of the company’s leadership and employees through generations”.

Promoting tradition, firmly entering a new stage of development

Currently, DISOCO is one of the leading mechanical manufacturing companies in Vietnam today with advantages in both breadth and depth when having all kinds of casting, forging, mechanical processing technology and investing systematically, effectively and synchronously from technological equipment to human resource management and training systems. Every year, DISOCO is currently providing 124 million products to domestic and foreign partners and customers; bringing jobs and income to nearly 1,000 workers.

With the foundation built over the past 45 years, in the coming time, continuing and promoting the tradition and achievements over the past 45 years, DISOCO commits to continuously strive to innovate, create and improve product quality, aiming for sustainable development and bringing practical values ​​to customers, partners and the community. 

Apply internal management measures to continuously reduce waste, cut costs, improve competitiveness and production and business efficiency. Continuously care for employees, ensure sustainable attachment between the enterprise and employees, for the harmonious interests of shareholders, enterprises and employees.

With reasonable goals and strategic orientations, the Company will certainly continue to have strong development steps in the coming time, joining the whole country in entering the era of national development.