Jan. 27, 2021
Acquisition of Aver Asia (construction equipment sales and rental company in Southeast Asia)
Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo has acquired 100% of the shares of Aver Asia (S) Pte (hereinafter, "Aver Asia"), a company engaged in the sale and rental of construction equipment in Southeast Asia, and has made Aver Asia a wholly-owned subsidiary.
Due to infrastructure improvement and urbanization, 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. Construction work has become increasingly mechanized 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 forecasted.
Aver Asia operates construction equipment distribution and rental business in seven countries, including Singapore, Malaysia, Indonesia and Thailand, and handles aerial work platforms, compressors, and generators as their main products. Along with the wide range of rental products, their nature as an equipment distributor enables them to meet broader range of customers’ requirement, such as quick and quality maintenance service, or flexible choice between renting and purchasing the equipment.
One of another distinguishing features is that they are focusing on locally-rooted services which adapt business models to the maturity of the market in each country.
Sumitomo Corporation will leverage the acquisition of Aver Asia to expand its business in the Southeast Asia, which will enter a period of growth in the construction equipment rental market, and to help improve safety and productivity in the region’s construction industry by offering highly reliable construction equipment and making it more widely available.
Sumitomo Corporation operates construction equipment distributors , and rental companies in 18 countries, and has a robust business foundation exceeding USD 4,000M annually. The Company will be seeking to enhance and expand the construction equipment rental business by mutually utilizing the collective know-how it garners and optimally allocating management resources in the three regions of Japan, the United States, and Southeast Asia.
■ Profile of Aver Asia
|Company name||:||Aver Asia (S) Pte Ltd|
|Head office location||:||Singapore|
|Employees||:||477 (as of December 31, 2019)|
|Sales||:||Singapore $ 90Mil (fiscal year ended December 2019; approx. 7 billion yen),|
Sumitomo Corporation’s Material Issues
Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This project especially contributes to the following material Issues.