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.