MAMMOET has relocated its Asia Pacific headquarters from Singapore to the Malaysian capital of Kuala Lumpur.

The decision is a cost-saving measure as salaries in Singapore are as much as double what they are in Malaysia, said regional director Ton Bakker. Bakker said that in Singapore wages are high and union representation is strong. As there is no work in Singapore, Mammoet has to pay employees to travel to other countries where the work is, and pay their accommodation costs and living expenses there.

With the downturn in workload in the Asia Pacific region, Mammoet has given back its Singapore storage yard, workshop and offices back to the Singapore government and reduced the status of its presence there to a branch operation.

New facilities have been established at Milai, near Kuala Lumpur airport.

Van Seumeren of the Netherlands took over its Dutch rival Mammoet last year, but kept the Mammoet name. In Asia, Mammoet’s operation – Walter Wright Mammoet – was significantly bigger than Van Seumeren’s. Walter Wright Mammoet had about 300 employees across Asia, to Van Seumeren’s 80.

In the Singapore regional offices Walter Wright Mammoet had about 30 staff to Van Seumeren’s four.

Bakker said that 2000 proved to be the worst year for the heavy lifting business he had known in the region, having been in Singapore for six years. There were no engineered heavylift projects, he said, and the company had to rely on lower margin rental contracts. Turnover fell more than 20%.

In December 2000 cut-backs were made in the operations department and 15 people were laid off. But with 2001 failing to see significant improvement in the market, and with competition growing from local companies like Tiong Woon which has built up a significant heavylift fleet of big Demags this year, further drastic action was necessary.

Bakker said Mammoet was looking to diversify into engineering projects that didn’t necessarily involve cranes or transportation.

‘There’s no future for Mammoet competing with Tat Hong and Tiong Woon. We need to be in the creative field,’ Bakker said.