A core growth driver of Tat Hong, our rental business comprises three divisions:
We operate out of our headquarter strategically located in Singapore, which is supported by regional rental bases in Malaysia, Indonesia, Thailand, Hong Kong, Vietnam, China, Papua New Guinea and Australia. Our rental bases were established back in the '80s when our management team foresaw tremendous growth potential in these markets.
Our customers include local and international contractors in the oil and gas, infrastructure, petrol-chemical, process, building and construction industries. With our well-established regional rental network base, we are able to reach out to our customers effectively, providing them with a one-stop shop solution at their convenience.
Our best-performing rental division - Crane Rental - has supported us well through past economic troughs. Today, our revenue and gross profit are mostly derived from this value-accretive segment.
Spotting the resilience of the rental business during tough times, our visionary management captured the golden opportunity to aggressively expand our crane and general equipment rental segments during the 1997 Asian financial crisis. Today, we have successfully transformed Tat Hong into a renowned global "rental" company.
In recent times, we witnessed the emergence of the oil and gas and resources sectors as key markets in the region with increasing demand for cranes, heavy lifting and haulage and offshore and marine services. Capitalising on this growth opportunity, we expanded our heavy lifting and haulage expertise and extended our presence in the offshore and marine services industry in the region through participation in several mega projects in Singapore, Malaysia, Australia and Indonesia. Leveraging on our comprehensive heavy lift and haulage solutions, we have established a resounding reputation in the industries including the booming oil and gas sector, which have supported our General Equipment Rental division's growth till today.
Moving ahead, we will continue to strategically expand our rental fleet, heavy lifting and haulage and offshore and marine services to better provide to these growth sectors and become top-of-mind in these industries region-wide.
Supporting our strong and stable Crane and General Equipment Rental divisions is our newest rental division - Tower Crane Rental. Formed in early 2009 as a gateway into the lucrative Tower Crane Rental market in China, we made our beachhead into this embryonic market in China in 2005, through a joint venture with our associated tower crane manufacturer company in China, Singapore-listed Yongmao Holdings Limited.
From a budding operation comprising 50 tower cranes, we have expanded our fleet size to over 500 tower cranes today. We aim to maintain our lead as the top tower crane rental group in China* through strategic M&As as well as through our five tower crane rental subsidiaries - Shanghai Tat Hong Equipment Rental Co., Ltd., Jiangsu Zhenghe Tathong Equipment Rental Co. Ltd, China Nuclear Huaxing TatHong Machinery Construction Co., Ltd, Beijing Tat Hong Zhaomao Equipment Rental Co. Ltd and Si Chuan Tat Hong Yuan Zheng Machinery Construction Co., Ltd.
With a total rental fleet of over 1,000 mobile, crawler and tower cranes that are in tune with the latest technological sophistication, we are able to meet our clients' stringent requirements across diverse industries.
* Source: International Cranes, IC50 Towers Ranking, June 2010