Equipment distributor Hup Soon Global is looking for more acquisitions despite declining sales in its forklift and tractor businesses.

Business Times Singapore reports that the Singapore firm has doubled its stake in Tai Kwong Yokohama Bhd (TKYB), the biggest automotive battery manufacturer in Malaysia, to 60.26%, and wants to buy more businesses to develop an extensive distributor network in Malaysia and Thailand.

While Hup Soon's automotive business in Malaysia grew 32% last year, the recession affected its forklift business, which depends on manufacturing and trade activities. Forklift demand dropped by about 50% and 60% in Thailand and Malaysia, respectively.

According to the report, Hup Soon grew its operating lease fleet by 22% after Malaysian businesses turned to leasing forklifts to ease cash flow problems during the financial crisis.

Hup Soon also sold 11.3% fewer tractors last year, losing market share to rivals in the big tractor segment. The company has started marketing a new range of small tractors to rice farmers.

Hup Soon is the exclusive distributor of Mitsubishi forklifts in Malaysia. In 2007, the company acquired a 30% stake in Nichiyu Asia Pte Ltd, the Asian distribution arm of Nippon Yusoki Co Ltd (Forkliftaction.com News #334).