07.08.2009

Tat Hong expands in China

Singapore based international crane company Tat Hong Holdings has invested in a new joint venture in China - Si Chuan Tat Hong Yuan Zheng Machinery Construction Co.

Its main partner is Yuan Zheng, founder and major shareholder of Guangzhou Hailin Resources a tower crane rental company with 113 mid to large cranes valued at RMB90 million ($13.2 million).

Tat Hong's investment of RMB 69.65 million ($10.25 million) has been made through its two Chinese operations - Beijing Tat Hong Zhaomao Equipment Rental of which it owns a 55 percent stake in a joint venture with Yongmao, and its wholly owned business - Tat Hong China Equipment (China), giving it a direct and indirect stake of 53.8 percent in the new business..

Zheng is putting in the cranes that he owns and leases to gain a 30 percent stake in the venture. Zheng will also be the general manager of the joint venture, while Tat Hong will appoint the chief financial officer.

Tat Hong’s chief executive Roland Ng 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.”