Major expansion at Arcomet

Arcomet acquired 100% of Y&P. "The price is undisclosed but we paid market value. The assets include 30 tower cranes in the rental fleet, all Terex Comedil," Dirk Theyskens, Arcomet managing director, told IC.

"We acquired Y&P because we think Asia is on the brink of a new growth decade after years of recession," Theyskens continued. "We needed a base there and we thought that Y&P was the best situated, first of all because Singapore is a very safe environment, both from a legal standpoint and a general standpoint. It is well organized and it provides some of the advantages for foreign investors that we were looking for."

Second, Y&P is the Terex Comedil dealer for Singapore and it holds marketing rights for other Asian countries "and we bought those with the acquisition so, now we are the official Terex Comedil distributor for many Asian countries; Singapore, Hong Kong, Macao, Malaysia, Taiwan, South Korea," Theyskens explained.

"This gives us not only the rental option but also the distribution of new cranes. It gives more credibility of the offer to the customer. We can sell new cranes with buybacks, we can rent them new cranes with an option to buy or with any other combination in-between."

In addition to the Singapore acquisition, a small rental operation with 30 cranes has been acquired in Hong Kong to develop the market there.

"We will also establish rental sales and service points in Taiwan in Korea and in Dubai, in the Emirates. All of this - the Middle East and the Far East - will be controlled from Singapore," Theyskens explained.

Y&P has been in tower crane sales and rental in its local and overseas market since the company was established in 1999. Turnover is Euro 15 million and there are 50 employees. The Y&P fleet of Terex Comedil tower cranes will be increased to 70 units in 2008, Theyskens said.

For full details of Arcomet's expansion strategy see our interview with Dirk Theyskens in International Cranes and Specialized Transport magazine.