Favelle Favco Cranes (M) Sdn Bhd, a subsidiary of Muhibbah Engineering (M) Bhd of Malaysia, is targeting a 30% increase in its sales of cranes this year from RM180m ($47m) achieved last year.
“We expect a growth of 10% to 20% … but 30% is achievable,” said Muhibbah Engineering chairman Mohamed Taib Ibrahim told the New Straits Times newspaper. he was speaking at the official opening of a new facility in Shah Alam, Malaysia by Prime Minister Mahathir Mohamad on 28 March.
Favelle Favco produces offshore pedestal cranes, tower cranes, wharf cranes, gantry cranes and crawler cranes. Some 95% of sales are outside of Malaysia.
Muhibbah has yet to make a profit from its crane operations since acquiring Favelle Favco and Kroll in the mid 1990s. The business plan was significantly hit by the patent dispute with Danny Davis in the USA over ownership of the rights to Caterpillar-based range of crawler cranes. With that dispute now settled, Muhibbah is looking to start making real money from its crane business which manufactures in the USA, Australia, Denmark and Malaysia.
It also has offices in the UK and, as of last month, in the Philippines where Favelle Favco Cranes Corporation has been set up to manufacture, supply, service, sell and rent cranes in Philippines and at the same time strengthen the Asean market coverage.