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.

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■ Profile of Aver Asia

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.

Achieving Harmony with the Global Environment

To realize recycling-oriented society and mitigate climate change, we are working to establish frameworks for the efficient use of resources and stable supply of renewable energy. In doing so, we will achieve growth in harmony with the global environment.

Contributing to the Development of Local Communities and Industries

We steadily procure and provide goods and services to meet the needs of people in various countries and regions and contribute to developing industrial platforms. Through these means, we will create a virtuous cycle in which we can grow and develop together with local communities.

Establishing a Foundation for Comfortable and Enriching Lifestyles

We strive to realize more convenient and comfortable lifestyles by providing goods and services for daily use while also responding to needs for high-quality lifestyles in order to support the physical and mental health of people around the world.

Providing Diverse “Accessibility”

We provide diverse accessibility to open up the possibility of creating new value. To this end, we will improve mobility for safe and efficient flow of people and goods, and expand the network connecting information and finance.

Developing Human Resources and Promoting Diversity

In order to create new value and innovation by allowing our diverse personnel to fully exercise their abilities in a variety of fields, we will promote the development and empowerment of human resources, which represent our most important management resources.

Enhancing Governance

We will enhance our ability to draft and implement strategies for achieving sustainable growth and to provide appropriate supervision of these strategies, all while maintaining transparency. In this manner, we will improve management efficiency and maintain sound management.