Hiap Tong signs JV in China
2 February 2010Singapore-based hydraulic mobile crane specialist Hiap Tong Corporation (HTC) has signed an equity joint venture agreement (EJVA) to establish an operation in China and target the country’s wind power sector.
HTC has entered the EJVA with Inner Mongolia Wulanchabu An Da Heavy Lift and Transport Co. Ltd (IMAD). The new company will be called Inner Mongolia Hiap Tong An Da Heavy Lift Co. Ltd (IMHTAD).
IMTHAD will provide heavy lifting and haulage services in China, particularly the north of the country. HTC will inject USD4m into IMHTAD and hold 80% of the equity in the company. IMAD will invest USD1m into IMTHAD for 20% of the company's equity.
“Wind power is the fastest growing renewable energy technology in the world, and has become an important part in the world’s energy markets,” said HTC executive chairman and CEO Ong Teck Meng.
“With strong support from the PRC government, China was ranked fourth in the world in 2008 in terms of wind power capacity. The installation of a typical windmill will require cranes with lifting capacities exceeding 500t.
“With the current limited supply of high lifting capacity cranes in the PRC, we believe there will be huge opportunities for us to provide specialised hydraulic lifting and haulage services to the PRC market.”
HTC provides lifting equipment to the marine, petrochemical and construction industries, generating 40%, 40% and 20% of its revenues respectively. HTC said it hopes to grow the revenue it generates from the wind energy sector to 20% over the next three years.
Ong added HTC’s lifting capabilities up to 800t are unique in Singapore, and that it is scheduled to take delivery of a 1,200t capacity mobile crane in 2010; the first company in Asia to do so.
“[This] will be our most advanced crane, ideal for the installation of wind turbines and maintenance of windmills,” Ong said.
