SHS in JV with Japanese to provide steel staircases in Singapore

Singapore

ENGINEERING services provider SHS Holdings' wholly owned subsidiary Hetat Holdingsis entering into a three-party joint-venture (JV) with precision staircase manufacturer Yokomori Mfg and steel trader Marubeni-Itochu Steel Inc (MISI) to provide and sell steel staircases in Singapore.

The JV company, Yokomori Singapore, will have an initial share capital of S$3.7 million and will be managed by Yokomori. It aims to produce about 1,000 to 1,500 tonnes of staircases in the first few years.

Yokomori will hold a 60 per cent stake in the JV, while SHS and MISI will hold 30 per cent and 10 per cent respectively.

Yokomori Singapore will leverage on Hetat's extensive network and experience in Singapore's construction industry, while MISI will assist in procuring steel materials. They will be working mostly on government projects and private properties.

Henry Ng, Group CEO of SHS Holdings, said: "Yokomori has taken a focused approach in the manufacturing of staircases, and there are very few of such companies. We are driving ourselves towards that kind of economy where efficiency and planning come into place, and that's what they have in Japan. It makes sense to bring this product to Singapore and go along with the government's direction for the construction industry."

This will be Yokomori's first venture into the Singapore market.

They also plan to use Singapore as a stepping stone to expand into other markets in the Asia-Pacific region in the next two years.

The joint venture agreement is expected to be completed by Aug 31 this year .

Yokomori Mfg has been around since 1945, and apart from Japan, it has businesses in China and the United States.

Toshiaki Ariake, president of Yokomori Mfg , said: "Our business is in line with what the Singapore government is looking for, which is manpower reduction and work productivity, as well as work safety. There is no market in Singapore for steel staircases yet, so we create that market, and we will be the pioneer in this field."

Yutaka Shimizu, executive officer of Iron & Steel Division in Marubeni-Itochu Steel Inc, said: "There is a very huge potential in the Singapore market. We can provide steel products to the new company, and we can also use this JV as an opportunity to establish business relationships with the local contractors."

For its first quarter ended March, SHS Holdings posted a 54 per cent fall in revenue to S$5.9 million, compared to the same quarter 12 months ago.

Loss attributable to equity-holders amounted to S$1.15 million, against a profit of S$204,000 in the year-ago period.