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By Alex Lim
WHEN Mr Teo Kiang Ang started Union Energy Corporation 32 years ago, it was a one-man show.
He had to look for new sales, service household appliances and update the books.
There was also the back-breaking task of delivering the heavy cylinders of LPG, or liquefied petroleum gas, a common fuel used in cooking.
From door-to-door gas delivery, Union Energy expanded gradually into related activities, becoming an LPG supplier, wholesaler and bottler.
Today, as one of the Enterprise 50 award winners, Union Energy, led by Mr Teo, is a company involved in just about every aspect of LPG in Singapore.
With a market share of around one third, it is the largest LPG supplier here.
'Our strength stems from being a total solutions provider in design, installation and supply of LPG systems and LPG itself,' says Mr Teo.
Over the years, the company has built an experienced team fully in tune with market conditions and well versed in practically all aspects of the LPG chain.
To keep its workers updated on new skill sets, Union Energy makes use of a slew of government initiatives that are aimed at enhancing the skill and productivity of its workforce.
Its fleet of more than 150 vehicles ply the roads daily, serving more than 4,000 customers islandwide.
For the average consumer, even if you do not buy gas directly from Union Energy, it is quite likely that the coffee shop where you have lunch uses gas supplied by the company.
This year, Union Energy is likely to achieve a turnover of some $68 million.
It has been growing at an annual rate of between 10 to 15 per cent since 2002.
The company has set its sights on generating sales of between $75 million and $80 million next year.
It is also exploring an initial public offering, which will give the company funding from the capital markets.
Union Energy is expecting its revenue to grow because of its entry into new business areas.
'Union Energy does not limit itself to be in the LPG trade. We are always on the move, sourcing for opportunities in other energy aspects,' says Mr Teo.
For example, by leveraging its expertise in the gas industry, the company was able to venture successfully into the CNG, or compressed natural gas, business.
While LPG is used in fuel for cooking, CNG is increasingly promoted as an alternative to petroleum and diesel used for powering motor vehicles.
In August this year, the world's largest CNG station was opened at Old Toh Tuck Road, fully owned and operated by Union Energy.
When queried on the impact the current economic slowdown has on the company, Mr Teo says: 'The effect of an economy downturn on energy industries is usually slight.'
At Union Energy, any slowdown in demand from existing customers is offset by new businesses captured from a larger market share, as well as new areas such as the CNG business.
But, it will be naïve to assume that Union Energy's customers are unfazed by the economic slowdown. Union Energy helps them by offering upfront rebates, especially for new start-ups.
'We continue to sell them LPG at market prices, or lower. This will enable them to pull through the economic downturn, and Union Energy will enjoy continuous business from them,' explains Mr Teo.
His business philosophy extends beyond being generous to customers, offering them only the best in products and services.
He adds: 'We always treat suppliers as business partners instead, so as to forge a longstanding relationship and attain a win-win business situation.'
As for employees, they are family, he says. He adds that having constant communication and understanding so that the 'family' can be healthy and prosperous is important.
But, just like any astute businessman, Mr Teo knows that there are always opportunities in challenging times, especially as the economy is now showing signs of recovery.
Union Energy views this as an opportunity to embark on a faster expansion pace.
'We are constantly exploring new business opportunities in the green energy sector and other forms of sustainable energy to expand our business portfolio,' says Mr Teo.
This article was first published in The Straits Times.
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