Last month, Union Steel announced that it had, through its wholly owned subsidiary Union Engineering Pty Ltd (UEPL), incorporated a new subsidy - MegaCrane.
MegaCrane was incorporated with a total registered and paid-up share capital of S$200,000 (AU$189,612.53). UEPL holds 60% of the shareholding interest in MegaCrane.
As part of the move, the subsidiary will integrate MegaCrane's existing operations, customer base, staff, inventory and operations.
With this new subsidiary, Union Engineering will be able to offer proprietary designed lifting winches, which are backed by software-based control systems and intelligent features for ease of operation, higher productivity and safety, and lower maintenance costs.
The business already has an established customer base in Singapore, with these proprietary winches already being used in workshops, precast construction yards, storage yards, and for projects such as cable and MRT tunnelling.
Union Engineering also intends to further improve the winch design and technology, making it even more attractive to existing and potential customers.
"Union Steel's engineering division is increasingly becoming a focus area for us, and we aim to continue expanding our capabilities in this area," Union Steel executive chairman and CEO Yu Seng Ang said.
"In the long run, this division will be an important source of not just recurring income, but growth for the Group as we harness synergies, economies of scale, and complementary opportunities between the operating subsidiaries."