 Nichiyu president Toshihiko Uratsuji (left) shakes the hand of Hup Soon Global CEO Timothy Chia (right) at the agreement signing. |
Hup Soon Global Corp Ltd has acquired a 30% stake in the Asian distribution arm of Nippon Yusoki Co Ltd (Nichiyu), Nichiyu Asia Pte Ltd (NAS).
NAS, which was incorporated in Singapore in 1992, distributes Nichiyu electric forklifts in Singapore, Malaysia, Thailand and Australia. It also has distribution rights in Indonesia, Vietnam, the Philippines and India.
Hup Soon Global signed the SGD2.11 million (USD1.45 million) acquisition deal at Nichiyu's headquarters in Kyoto, Japan last Wednesday.
Group CEO Timothy Chia says the acquisition is an extension of Hup Soon's existing relationship in Thailand, "expanding its presence globally in the distribution of materials handling equipment".
Nichiyu forklifts are distributed in Thailand through Nichiyu (Asia) Thailand Ltd, a joint venture between United Motor Works (Siam), an associate company of Hup Soon, and NAS. In Australia, forklifts are distributed through the 20% NAS-owned Nichiyu Forklifts Australia Pty Ltd, while wholly owned subsidiaries distribute its products in Malaysia and Singapore.
The acquisition follows Hup Soon Global's announcement it is now the exclusive distributor of Mitsubishi forklifts in Malaysia.
Mitsubishi and Nichiyu are no strangers. The former boosted its shareholding in Nichiyu by 2.2% to 20.1% in May 2007. The purchase signifies a strengthening of the relationship between the two companies which spans over more than 40 years (
Forkliftaction.com News #313).
"Nichiyu is a specialist in electric forklifts while Mitsubishi is an industry heavyweight in internal combustion models," Chia says, adding this benefits Hup Soon's portfolio of materials handling products.
He says the rise of electric forklifts' popularity in developed countries is likely to filter into Hup Soon's markets.
"With growing environmental awareness and the pro-environmental regulatory push worldwide, we are optimistic there will be growing demand for these eco-friendly products."
NAS is a wholly owned subsidiary of Nichiyu. Nichiyu claims to be the first Japanese company to develop an electric forklift in 1939. The company is listed on the Tokyo and Osaka stock exchanges.
Nichiyu reported revenues of JPY65.9 billion (USD574.4 million) and operating profits of JPY3.1 billion (USD27 million) for the financial year ended March 2007.
Hup Soon Global Corp Ltd markets and distributes automotive consumables, agricultural equipment, industrial supplies and materials handling equipment in South East Asia through different trade names. It is listed on the SGX Sesdaq and represents 60 leading brands including New Holland tractors and 3M adhesives, mainly in Thailand and Malaysia.