Tat Hong consolidates operations in Tuas, moves some processes to Johor

Striving for better operating efficiency.

In a disclosure to the Singapore Exchange, Tat Hong Holdings Ltd announced that it is embarking on a programme to consolidate and optimise its Singapore operations and has secured a 22-year lease from Jurong Town Corporation for a 16,100 sq m plot of industrial land at Tuas South Street 10.

The consolidation of operations will free up one of its lease-hold properties, at 11 Gul Crescent, which the Group intends to divest through a public tender.

The Group currently also operates out of five other sites in the western part of Singapore.

However, with the growth of its crane rental and distribution businesses, the current facilities are not sufficient to serve the Group’s needs effectively as most of the sites are small in size and have short remaining leases of between two and 11 years which make planning for future use difficult, the company said.

For better operating efficiency, the Group will be consolidating its operations in the Tuas area. In addition, the Group also plans to move some of its less time-sensitive operations to Johor where land and operating costs are lower.

The site at 11 Gul Crescent was acquired in 1981 with a 30+30-year lease and comprises 29,384.5 sq m land with two single-storey high-clearance buildings and an ancillary office space.

Depending on the final sale price and the completion date, the Group is expected to recognise a gain on the divestment of 11 Gul Crescent in the financial year ending 31 March 2014.