Wednesday, January 13, 2010

Hiap Tong Set Up Heavy Freight Haulage Joint Venture In China

Looks to Exploit Wind Farm Boom
Shipping News Feature

SINGAPORE / CHINA – Singapore-based heavy lifting and haulage specialist Hiap Tong Corporation (HTC) has today announced that they have signed a joint venture agreement with Inner Mongolia Wulanchabu An Da Heavy Lift and Transport Co. Ltd. (IMAD), a heavy freight company based in China.

The new JV shall be named Inner Mongolia Hiap Tong An Da Heavy Lift Co. (IMHTAD) and be financed to the tune of five million dollars, with HTC providing 80% of the capital and holding the same amount in equity.

The new company will offer heavy freight handling and haulage services to the northern areas of the Peoples Republic and aims to capitalise on the government of the PRC’s rapid expansion of wind turbine farms.

According to the Global Wind Council the PRC is now the fourth largest producer of wind energy and has plans to increase this by almost 200% by 2012, a massive undertaking.

As HTC’s CEO, Ong Teck Meng explained: “The installation of a typical windfarm will require cranes with lifting capabilities exceeding 500 tonnes. With the current limited supply of high lifting capacity cranes in the PRC, we believe there will be huge opportunties for us to provide specialised hydraulic lifting and haulage services to the PRC market.”

Currently IMAD has installed and maintains more than 300 turbines on wind farms across northern China. By combining the two companies experience, equipment and financial resources in the new JV both partners look set to benefit in the long term from the growth in wind energy exploitation.

http://hiaptong.listedcompany.com/