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PROSPECTS
With the projected recovery of the global and
regional economies over the next few years,
construction, civil engineering, offshore and
marine and oil and gas related activities are
expected to pick up and result in increased
demand for cranes and aerial lifts.
Infrastructure, Public Sector Construction
and Private Sector Construction
- According to the
Building and Construction Authority, the
average annual construction demand for 2010
and 2011 is projected to range between S$20
billion and S$27 billion. Compared to the
average annual construction demand of S$13
billion from 1998 to 2006, the projection of
at least S$20 billion annually for 2009,
2010 and 2011 is at least 54% higher
- Construction demand in the public sector is fuelled
by projects such as the MRT projects (Downtown
line, the North-South Line Extension and Jurong
East Connection), major road projects including
the S$4 billion Marina Coastal Expressway and
the new HDB flats; the BCA also expects higher
demand for private institutional and other
buildings to provide support to the overall
private sector construction demand
- With our track record in key
infrastructure projects, we expect our equipment
rental business to benefit from the increased
demand for cranes and aerial lifts to support
infrastructure projects
Offshore and Marine and Oil and Gas
Industries
- The expected recovery in
the global economy may lead to increased
demand for petrochemical products, which may
in turn spur increased investments in these
industries, such as the construction of new
oil refineries or petrochemical facilities
and offshore vessels. Our equipment rental
business is likely to benefit from increased
demand for cranes and aerial lifts arising
from these activities
In the short term, construction and civil
engineering activities in countries where the
governments have initiated infrastructure
projects (as part of their fiscal stimulus
packages) are expected to provide support for
the demand for cranes and aerial lifts. The
expected increase in demand for cranes and
aerial lifts may also benefit our trading
business.
FUTURE PLANS
Renew and expand our equipment rental fleet
in Singapore
- With an advanced and
larger equipment rental fleet, we will be
able to target a larger pool of customers
- By renewing our
equipment rental fleet, we aim to:
- lower the average age of
our cranes, reduce equipment downtime,
thereby resulting in a more reliable fleet
- focus on building our
fleet of cranes in the mid-to-high lifting
capacity segment which are deployed for
larger projects
- offer niche services
through acquisition of specialised equipment
that have greater lifting performance and
height access, and offer a more complete set
of lifting services
Expand our business and operations through
acquisitions, joint ventures and/or strategic
alliances
- To explore opportunities to collaborate
with suitable partners in related industries
through strategic alliances, joint-ventures,
acquisitions, and investments
- For example, we may collaborate with
partners in our focus industries for more
business opportunities, in particular higher
margin projects with requirements for
turnkey project engineering services
- We may also use our net proceeds to
acquire equipment rental companies
Expand our equipment rental fleets in
Malaysia and Vietnam
- We intend to explore and develop new
business opportunities in Malaysia and
Vietnam where we currently have a presence
- We plan to increase our fleet in both
countries through the acquisition of cranes
and aerial lifts to meet the expected
increase in demand for lifting services
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