Sumitomo Corporation has announced the acquisition of Aver Asia (S) Pte Ltd, a construction equipment sales and rental company based in Singapore with operations across Southeast Asia.
“Due to infrastructure improvement and urbanisation, construction demand is expected to grow in Southeast Asia. The amount of construction investment within the region is estimated to be doubled over the next five years,” explained Sumitomo in its statement. “Construction work has become increasingly mechanised as safety awareness has risen and economic development has brought about higher personnel costs, and an accelerating shift from ownership to rental of construction equipment is forecast.”
With this acquisition, Sumitomo aims to expand its business in Southeast Asia, which is likely to enter a period of growth in the construction equipment rental market. The company also intends to help improve safety and productivity in the region’s construction industry by offering highly reliable construction equipment and making it more widely available.
Aver Asia, now a wholly-owned subsidiary of Sumitomo Corporation, manages construction equipment distribution and rental business in seven countries, including Singapore, Malaysia, Indonesia and Thailand. The company offers aerial work platforms, compressors and generators as its main products.
“Along with the wide range of rental products, their nature as an equipment distributor enables them to meet a broader range of customers’ requirement, such as quick and quality maintenance service, or flexible choice between renting and purchasing the equipment,” said Sumitomo of its new subsidiary. “Another distinguishing feature is that they are focusing on locally-rooted services, which adapt business models to the maturity of the market in each country.”
Headquartered in Japan, Sumitomo Corporation operates construction equipment distributors and rental companies in 18 countries, and has a robust business foundation exceeding US$ 4,000 million annually, according to the company’s statement. It is also seeking to enhance and expand the construction equipment rental business by mutually utilising the collective know-how it garners and optimally allocating management resources in three regions: Japan, the US, and Southeast Asia.
Image: Sumitomo Corporation