Potain expects increase in Asia crane sales

Potain expects increase in Asia crane sales

SINGAPORE (Reuter): French tower crane manufacturer Potain
expects to see its annual sales in Asia including Indonesia grow
20 percent for the next few years, a senior company official said
yesterday.

"We believe that significant sales increase can be achieved in
Indonesia, Vietnam and Philippines, which can be booming areas
from the market overall," said Eric Etchart, Asia sales director.

"Our targets would be to achieve something like 20 percent
every year," he told a news conference.

Potain, a subsidiary of Paris-listed construction equipment
manufacturer Legris Industries, saw sales turnover of US$244
million for financial year ended Dec. 31, 1996.

Etchart said Asian sales accounted for about 25 percent of its
income, with Hong Kong one of its largest markets.

Manta Equipment, a unit of Mulpha International has also been
appointed exclusive distributor to expand Potain's tower cranes
sales and leasing business in the region.

Manta executive director Richard Liao said the partnership was
timely as the equipment replacement market was likely to rise due
to a Singapore government decision to place a 15-year age limit
on tower cranes for safety standards.

"The age limit policy has resulted in more contractors
purchasing and renting cranes for their projects," Liao said.

The Manta Group has a rental fleet or more than 150 tower
cranes in the region.

"We intend to double this number in the next two years," Liao
said.

Liao said he expected the company to generate about Singapore
$15 million (US$10.4 million) in the first year of operation from
the sale, rental and servicing of cranes.

Potain, which has had a 20-year relationship with Manta Hong
Kong, has captured a market share of 70 percent in Hong Kong and
an overall Asian market share of about 20 percent, Etchart said.

He said trends were "very positive" in the Far East and not
really set back by intermittent local factors such as the
economic crisis in Thailand.

Part of Potain's expansion includes the shifting of its Asian
headquarters to Singapore from Kuala Lumpur from September 1,
Etchart said.

"We have to be where we anticipate substantial growth," he
said, adding that Singapore was well placed and a center for
service and spare parts.

Potain also intends to set up a training school and a regional
spare parts center here to support its distribution network,
employing expatriate staff and local engineers.