Sumitomo acquires Aver Asia
By Euan Youdale09 March 2021
Japan’s Sumitomo Corporation has acquired Aver Asia, one of Southeast Asia’s largest rental companies.
Aver Asia offers distribution and rental in seven countries, including Singapore, Malaysia, Indonesia and Thailand, with aerial platforms, compressors and generators being its main products. The company has more than 4,000 units in its MEWP rental fleet.
Sumitomo said Aver Asia would become a wholly-owned subsiduary of the group and help expand its business in Southeast Asia, which is seeing considerable growth, particularly in the rental market. Commenting on Aver Asia, Sumitomo said in a statement, “One of their distinguishing features is that they are focusing on locally-rooted services which adapt business models to the maturity of the market in each country.”
Beyond rental, Sumitomo said Aver Asia’s equipment distribution business would also be broadened by the acquisition, which will help them expand maintenance and service offerings.
Sumitomo added, “Due to infrastructure improvement and urbanisation, construction demand is expected to grow in Southeast Asia. The amount of construction investment within the region is estimated to be doubled over the next five years.
“Construction work has become increasingly mechanised as safety awareness has risen and economic development has brought about higher personnel costs, and an accelerating shift from ownership to rental of construction equipment is forecasted.”
Sumitomo, which operates in 18 countries, including the US, with an annual revenue exceeding $4 billion, added that one of its aims is to help improve safety and productivity in the construction industry by offering reliable equipment and making it more widely available. “The Company will be seeking to enhance and expand the construction equipment rental business by utilising the collective knowhow it garners and allocating management resources in the three regions of Japan, the United States, and Southeast Asia.”