TOKYO, Nov 14, 2016 - (JCN Newswire) - Mitsubishi Corporation (MC) and its wholly owned subsidiary Nikken Corporation (RN) have joined forces with T.S.K. Crane Service Co., Ltd. (TSK), one of Thailand's largest crane rental companies, to establish a new crane rental company in Thailand. The new venture, T.S.K Diamond Rental Co., Ltd. (TSKDR), was established at the end of June this year, and has now fully entered the domestic mobile crane rental business in Thailand. In terms of shareholder participation, TSK will hold 60%, MC 35%, and RN 5% of shares. With about 300 units, TSKDR will own the largest number of mobile cranes in Thailand.
Since the latter half of the 1980s, the Thailand economy has grown by an average GDP rate exceeding 5% per annum, largely against the backdrop of foreign investment in the manufacturing sector and the expansion of production for export, transforming Thailand into a major production hub in Southeast Asia. However, it is projected that demand in the construction industry will continue to rise as the government of Thailand still has plans to invest aggressively in infrastructure development over the medium- to long term.
In addition, the establishment of the ASEAN Economic Community (AEC) last year is expected to bring about greater movement of people, goods and capital among the countries of the region. Given these developments, Thailand is well-placed to see its capacity as a production hub grow even further. With the AEC, it is likely that further investments in infrastructure and in fields related to plants and equipment will also expand as industry structures trend towards a greater division of functions among AEC member countries, and as a larger and more integrated economic community takes shape.
TSK has been a leader in the crane rental business in Thailand for over 40 years, establishing a brand that is well recognized nationwide, particularly in plants and infrastructure-related businesses, and has established an extensive nationwide network. Meanwhile, MC has a strong worldwide network and has deepened its connections across ASEAN, while accumulating significant know-how from its various development projects in the region. TSKDR will therefore be drawing on a combination of TSK's strong domestic presence and MC's global strengths to capture growth in the ASEAN market.
Taking advantage of RN's know-how in rental services, TSKDR will start a new rental service that is not limited to cranes, but includes other machines used in construction. Through this new venture, MC will work with TSK and RN to expand the delivery of high-quality services with a focus on "Safe and Secure" services across the entire ASEAN area, while at the same time contributing to the region's economic development.
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Topic: Press release summary
Sectors: Construct, Engineering
From the Asia Corporate News Network
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