21.01.2010

Tat Hong completes China JV

Singapore based international crane sales and rental company Tat Hong, has confirmed that the Sino-foreign equity joint venture - Si Chuan Tat Hong Zheng Machinery Construction Co Ltd (SCTHYZ) - that it announced in August, to rent tower cranes in China, has now been incorporated.

As usual with Tat Hong the investment is complex, with several subsidiaries owning minority positions in the new business.

Its wholly owned business - Tat Hong China Equipment (China)- (THEC) owns 25 percent of the new venture while Beijing Tat Hong Zhaomao Equipment Rental – (BJTH), (which is 55 percent owned by Tat Hong in partnership with Yongmao) owns 45 percent.

The net result is that Tat Hong controls 70 percent of the shares and has an effective net holding of 54.1 percent.

THEC has injected RMB 35 million ($5.1 million) into the new business and a further RMB34.6 million ($5 million) into BJTH which will then inject RMB63 million ($9.2 million) into the venture within the next 12 months.

Yuan Zheng, founder and major shareholder of tower crane rental company Guangzhou Hailin Resources owns the remaining 30 percent stake in SCTHYZ and will be its general manager, his investment comes in the form of 113 mid to large cranes valued at RMB90 million ($13.2 million).