TADANO, a Japanese manufacturer of lifting equipment, has set up a joint venture with Italthai Industrial for the distribution of cargo cranes, aiming to cash in on the logistics growth and rising infrastructure investments in Asean, especially in the CLMV countries (Cambodia, Laos, Myanmar and Vietnam).
The joint venture, Tadano Italthai, will serve as the Japanese parent’s exclusive loader crane distributor in Thailand, Laos |and Cambodia, Italthai Industrial chief executive officer Adis Peukpattanaruks said yesterday.
Hidetoshi Iga, CEO of Tadano Italthai, said the JV was founded with registered capital of Bt50 million, with Tadano Japan holding |a 49-per-cent share, Italthai Industrial 48 per cent, and MHCB Consulting (Thailand) Co the rest.
Italthai Industrial, one of Italthai Group’s core businesses, has been the exclusive distributor of Tadano’s cranes, including cargo cranes, in Thailand since 1985, before expanding into the Laos market in recent years. But from now on the JV will take exclusive charge of the distribution of cargo cranes.
According to Nation Mulit Media, Tadano Italthai came into being after the two parties foresaw the continued growth of the cargo-crane market in the Asean region, which is set to expand further after planned infrastructure investments in Thailand, Laos and Cambodia. Some of these investments are in response to China’s “One Belt, One Road” initiative, which hopes to establish economic routes linking Europe, Russia, Central Asia and Asean, Adis said.
He said the joint venture brought together Tadano’s strengths in product quality and brand trust and Italthai Industrial’s expertise in marketing and after-sale services.
Currently Italthai Industrial has 14 after-sale service centres in Thailand and Laos combined.
Iga said Tadano had chosen Thailand as a distribution and sales hub for Laos and Cambodia as the company has complete trust in the experience and performance of Italthai Industrial.
He believes that Thailand’s cargo-crane market is now the biggest in Asean, with room to grow further thanks to many contributing factors. These include the government’s continued policy to invest in infrastructure systems and its |foreign-investment promotion schemes. Currently Tadano has one cargo-crane assembly plant in Thailand, which has maximum production capacity of more than 1,000 units per year.
Italthai Industrial senior vice president Somkieat Jiviriyawat said the JV would target domestic and international logistics and transport operators as customers. Initially the company will focus on Thailand, Laos and Cambodia. It is expected to make inroads into Myanmar market next year.