
Tiong Woon Corporation chairman Ang Kah Hong (right) with Meshari Al-Khaled, SAGIA’s Country Director for its Singapore office
Soon Douglas is principally in the business of leasing of tower cranes and trading of equipment spare parts for the construction, mining and shipbuilding industries. Currently, it operates a fleet of 49 units of tower cranes in Singapore and it also owns two mobile cranes, and owns premeses.
Tiong Woon Corp is an integrated services provider for the oil and gas industry, and is a specialist in heavy lift, and installation of process equipment. The acquisition will broaden Tiong Woon Corp’s asset base and complement its heavy lift and haulage business, said Ang Kah Hong, TWC’s Group Chairman and Managing Director. Tiong Woon Corp has a strong presence in the Asia Pacific region and currently has over 200 cranes deployed in the region.
“It will also strengthen our position as a heavy lift company and enable us to build up another arm that we are confident will contribute positively to our operations,” Ang said.
He added that the purchase price was arrived at on a “willing buyer, willing seller” basis and the cost of the total consideration will be funded by internal funds. The S$6.64 million purchase price comprises of S$3.18 million for the purchase all Soon Douglas shares and about S$3.46 million of shareholder loan repayment. Ang is upbeat on the business outlook for the company. The Oil and Gas Sector is on an uptrend and he is optimistic that this will continue in the next three to five years.
The upturn in Singapore’s construction industry and the expected strong demand for industrial developments such as petrochemical plants, residential projects, on-going developments in the Orchard Road area and the Business Financial Centre, and the two Integrated Resorts all point to a positive outlook for Tiong Woon Corp at home, the company said.
Beyond Singapore, Tiong Woon Corp has a regional presence notably in Malaysia, China, Thailand, Indonesia, the Philippines and the Middle East. Earlier this year, Tiong Woon Corp became the first Singapore company to be awarded an investment licence to run a 100-per cent foreign-owned business entity in the Kingdom of Saudi Arabia. Going forward, the company is planning to: • focus on its core competency of heavy lift and haulage • actively seek business opportunities in the emerging and growth markets e.g. Middle East • invest in higher capacity and specialised equipment • forge alliances and co-operation with strategic and industry players • adopt more stringent credit evaluation policies to improve cash flow position and minimise provision for impairment of trade receivables
Tiong Woon Corporation chairman Ang Kah Hong (right) with Meshari Al-Khaled, SAGIA’s Country Director for its Singapore office
Tiong Woon’s deal to enter Saudi