Chinese tower crane manufacturer Yongmao has sold ten cranes to Singapore crane sales and rental house Erect Group, for an end user in Myanmar.
The SGD3m (USD2.39m) deal will see Yongmao deliver 10 of its STT cranes through 2014-2015. It follows the manufacturer’s first sale in the country (also commonly known as Burma) at the start of this year.
As Myanmar democratises and its economy opens up from years of sanctions and restriction, companies like Yongmao are seeing new opportunities. Yongmao executive director and group general manager Sun Tian says deals like this are an important part of his company’s export strategy: “Following our first foray into the Myanmar market, we are expanding our foothold in this region. We foresee that urbanization and economic development will drive higher construction activities to support this progression.
“Eyeing the potential demand for infrastructure across Asia, we hope to continue to promote the Yongmao brand, quality and service in order to cater to the need for quality tower cranes. We believe our competitive edge lies in our product and service: our tower cranes have obtained the relevant product safety and design approval of various countries and we provide premium after-sales service.
“Moving ahead, we hope to continue our push into Myanmar by securing more contract wins with well-established tower crane rental firms there.”
Revenue from Asia, besides China, contributes 25.1% of Yongmao’s turnover for its nine months ended 31 December 2013 (“9M2014”). Revenue from this geographical segment has increased 11.6% from RMB155.0 million for its nine months ended 31 December 2012 (“9MFY2013”) to RMB173.0 million for 9MFY2014.
Yongmao is on the lookout for collaborations with existing customers who have plans to enter the Southeast Asia market. Such partnerships include working with Singapore rental companies and contractors to provide towercranes in Myanmar, Vietnam and Indonesia. Besides this, Yongmao hopes to participate actively in various trade fair and exhibition in Southeast Asia.