SGX-listed trading company Intraco Ltd has established a joint venture to get into crane rental and other related business activities in Myanmar and tap the Southeast Asian country’s rising infrastructure needs, the firm said.
The JV entity, Tat Hong Intraco Heavy Equipment Co Ltd, established in August last year between Intraco, Singapore-based crane company Tat Hong Holdings Ltd and Myanmar tycoon Aung Moe Kyaw, will have a paid-up capital of $150,000 comprising 150,000 shares.
Aung Moe Kyaw is a Myanmar businessman with diverse business interests. He is best known as Chairman and Managing Director of International Beverages Trading Company Group, the leading alcoholic beverage producer and distributor in Myanmar.
Intraco Managing Director and CEO Foo Der Rong said: “We believe the prospects for Tat Hong Intraco Heavy Equipment Co Ltd are promising as Myanmar is opening up and the country has many infrastructural needs with huge growth potential.”
The transaction is funded through internal resources and is not expected to have any material impact on earnings per share or net tangible assets per share of the group for the financial year ending December, Intraco said.
Incorporated in 1968, Intraco sourced raw materials, commodities and manufactured goods to support Singapore’s early industrialisation programme. Intraco’s network spans across ASEAN and China.
Tat Hong is the largest crane rental company in the Asia-Pacific region in terms of aggregate tonnage, according to International Cranes, IC50 Ranking in June last year. It has four key businesses –distribution of cranes and heavy equipment, rental of crawler and mobile cranes, rental of tower cranes and general equipment rental.