Tat Hong expands in China
By Alex Dahm10 August 2009
Singapore-based crane and equipment rental and sales company Tat Hong Holdings has signed a joint venture agreement with Chinese tower crane rental company Guangzhou Hailin.
The agreement between Beijing Tat Hong Zhaomao Equipment Rental Co. Ltd (BJTH) and Yuan Zheng, founder and major shareholder of Guangzhou Hailin Resource Co. Ltd. will further strengthen Tat Hong's presence in the Chinese tower crane market.
Tat Hong is investing RMB 35 million (US$5 million) through its wholly owned subsidiary Tat Hong Equipment (China) Pte Ltd (THEC) and another RMB 34.65 million into its 55% owned BJTH for 53.8% ownership of the JV company Si Chuan Tat Hong Yuan Zheng Machinery Construction Co Ltd. Yuan Zheng gets a 30% stake in the JV company in return for the Guangzhou Hailin crane fleet, contracts and other assets.
Commenting on the deal, Roland Ng, Tat Hong president and group CEO, said, "Notwithstanding the uncertain outlook for the global economy, we remain optimistic of our long-term growth prospects in China's tower crane rental market. Our progressive and steady expansion in China will allow us to further strengthen our foothold in this lucrative market to satisfy the continuing demand for tower crane services."
BJTH is a joint venture between THEC and Fushun Yongmao Construction Machinery Co Ltd, a wholly owned subsidiary of Chinese tower crane manufacturer Yongmao Holdings Ltd.
Guangzhou Hailin was established in 1997 and has grown its fleet to include 113 medium and large tower cranes, valued around RMB90 million ($13 million). It covers southern China and specialises in erecting pylons for electricity transmission.