Steel-y determination makes for top venture
PIONEERS in the kitchen. From left (standing) John Echauz, Kenneth Silayan Go, Joey Silayan, Felici Silayan and Florentino Silayan.
In growing a business, you need to have the smarts and a steely determination.
This is the lesson Florentino “Ren” P. Silayan has learned after pioneering steel fabricated kitchens for the Philippine food service industry in 1965.
Armed with a strong entrepreneurial spirit, Silayan and his wife, Felici, set up a business using stainless steel as prime material in industrial kitchens. Silayan had a chemical engineering degree from the University of the Philippines-Diliman and a literature degree from Ateneo tucked under his belt.
“It was a roll of the dice. We did not have sufficient capital to fund the venture. Asking for money from our parents was not an option. There was no money, but we had a lot of confidence,” Ren narrated.
To bring his vision to fruition, he leased some properties and came up with enough starting capital to buy flat stainless steel supplies and a 10-foot steel bender.
A small garage in Potrero, Malabon became the first site of what is now known as Allied Metals.
Ren attributed his foray into the steel business to a combination of guts and luck. His first client was the Bangko Sentral ng Pilipinas.
“They were then known as the Central Bank of the Philippines. I received a phone call [and was] invited to bid for the construction of their cafeteria counter. Maybe they thought using stainless steel for the counters is more economical than using cement, so I won the bid. I was lucky they didn’t inspect the plant because there was no plant back then,” he said.
Allied Metals made stainless steel fashionable. Steel was more durable and easier to maintain. “And it is perfect for industrial kitchens,” he said.
After the BSP stint, a string of clients poured in for Allied Metals.
Ren got his biggest job order 10 years after putting up the business. He was tasked to plan and construct the kitchens of seven hotels. It was in preparation for the arrival of the delegates of the International Monetary Fund in Manila.
While he had too much on his hands, he refused to sacrifice quality. “It was the perfect opportunity to show our capability in superior craftsmanship and personalized service.”
Guided by these two principles, Allied Metals became a name synonymous to quality service.
Today, the company supplies kitchen systems for some of the recognized brands in the country, such as Jollibee and McDonalds.
“We have been with Jollibee since store number one,” Felici said.
Nearly all recognized hotel chains in Metro Manila such as Sofitel Philippine Plaza, City of Dreams, Shangri-La, Dusit Thani, and Diamond Hotel have kitchens designed, constructed, and maintained by Allied Metals.
Silayan said Allied Metals is an “indigenous enterprise” for the reason that it did not depend on multinational companies to stay afloat.
All the funds that were generated to grow the business sprang from good business relations, excellent customer service, and a strong sense of loyalty between employees and clients, Ren said.
“This is an all-Filipino brand. Proudly ours,” he said.
Like most companies, it was during the 1997 Asian economic crisis when Allied Metals experienced strong currents.
“We were hit hard. But company managers worked hard to negotiate and restructure their business loans. Allied Metals paid all loans in 2012,” Felici said.
Ren was undaunted and decided he will not kick out employees.
To this day, one of the reasons why Ren refuses to retire is that he “still has 200 families to feed.” Ren still overlooks the overall operations of the business, even if he is now the chair emeritus.
The firm now has a one-hectare plant in San Jose del Monte, Bulacan, which was constructed in 2003.
After 50 years of acquiring a wealth of knowledge and experience, Allied Metals is still confident of the future.
Allied Metals’ new chair, John B. Echauz, recognizes the basic premise that everybody should eat well.
“The quality of food in the Philippines is going up. And eating well begins with a good kitchen,” he said.
Kenneth Silayan Go, president of Allied Metals, said these are “exciting times mostly for infrastructure.”
He said Allied Metals has invested in expert engineering and has a complete set of services from design to maintenance. “This is perhaps the reason why we’re still around after 50 years.”
Adding to their long—and still growing—list of clients are several local and international hotels and companies like Excelsior Hotel in Hong Kong, St. Luke’s Medical Center in Global City, Bank of the Philippine Islands, Philippine International Convention Center, United Laboratories, Pico de Loro Resort Beach and Country Club, Asian Institute of Management, Cultural Center of the Philippines, Canlubang Golf and Country Club, Spiral Restaurant in Sofitel, and Pilipinas Shell Petroleum Corp.
Ren believes that it all boils down to having a steely confidence to run a business like Allied Metals.
“You have to look forward to your next project. You always have to outdo your best work,” he said.
