(SINGAPORE) Even though flat growth is expected in the year ahead, cargo-handling solutions provider Cargotec is positioning itself for the future with a new $20 million 17,721 sq m facility at the recently rebranded Tukang Innovation Park.
Together with upgrades to its manufacturing and assembly plant for maritime transportation and offshore brand MacGregor in Tuas, total investment since last year has amounted to $40 million.
The regional logistics hub which Cargotec has set up will serve the Asia-Pacific region which last year accounted for more than one third of Cargotec's sales of 2.6 billion euros (S$4.9 billion) and has been identified as a key growth area, said president and CEO Mikael Makinen.
'This new facility in Singapore brings together the business areas of Cargotec, allowing us to derive greater cost-efficiencies and effectiveness with shared services and use of resources,' Mr Makinen said.
It will be important in serving the expected growth in services requirements as clients retool to meet a recovering market. Cargotec sees high double-digit growth in this segment, said Asia-Pacific executive vice-president Ken Loh.
Meanwhile, executive vice-president for Cargotec's offshore and marine products brand MacGregor Olli Isotalo said he expects the offshore segment of the business to recover the fastest. 'It's the offshore side where we clearly see activity and we expect that to be realised during this year,' said Mr Isotalo.
Growth will come from offshore supply vessel newbuildings particularly as these vessels are now expected to serve fields that are in deeper water and in more harsh conditions.
About 39 per cent of Cargotec's revenue comes from the offshore and marine segment, with another 39 per cent coming from its ports business where it supplies both quayside and gantry cranes and the remaining 22 per cent coming from on-land vehicles such as trucks.
Guest of honour, Second Minister for Finance and Transport Lim Hwee Hua, said: 'Your expanded presence in Singapore also adds to the vibrancy of the broader maritime scene. As an increasing number of industry leaders such as Cargotec continue to establish and augment their activities here, we will generate a buzz that helps attract other related businesses to Singapore.'