Hewden invests £20m and considers tools

Hewden is investing £20 million in new equipment for its rental fleet - with JCB and Thwaites being the two major suppliers - and said it was likely to reintroduce a range of tools for rental during 2011.

The order includes £14 million worth of JCB equipment, comprising Loadall telescopic handlers, mini excavators, tracked and wheeled excavators and the new 3CX Eco backhoe loaders. Hewden is also buying 125 new Thwaites dumpers.

Hewden's chief executive, Kevin Parkes, said further initiatives were likely. "We currently focus on five product platforms, with plant, access, cranes, power generation and accommodation, and we will be investing in each of these areas but we are also exploring opportunities to expand our range with complementary products.

"During 2011 this is likely to include the re-introduction of a specific range of tools for hire, so we can support customers with a full product offer, further improving efficiency and service."

Hewden sold its tool hire business to Speedy Hire several years ago at a time when it was under the ownership of Finning UK. Now under private equity ownership, Hewden recently employed an ex-Speedy employee Stuart Langham to focus on its training services and to look into opportunities in tool hire.

There is industry speculation that it could make an acquisition to re-enter the tool market, with Manchester-based Supply UK being one name offered as a possible target. Supply UK has a network of 23 branches throughout England.

Hewden said the £20 million investment was the first step in "one of the largest investment programmes by the plant hire sector since the start of the recession" and constituted a "vote of confidence" in the future of the company and the construction sector.

Kevin Parkes said Hewden was building closer relationships with the leading players in the market; "We are determined to increase levels of availability so plant and equipment is ready for hire, where and when customers need it. This £20 million investment is just the first stage in our development plans for 2011 and is a clear sign of our commitment to customer service and achieving growth."

Hewden's product director, Andrew Swallow, said the investment will transform the company's rental fleet; "We have selected the very best product in each category, based on the clear preferences of our customers and working with ‘best in class' suppliers, who support the strategic development of our business."