Concrete pipe maker Nippon Hume to divest Thai subsidiary to Mongheng Group
BANGKOK, NNA – Major Japanese concrete pipe maker Nippon Hume Corp. is divesting a 60 percent stake in its Thai subsidiary to a local peer, shifting its strategy to gaining royalties through technical assistance in the rising construction and infrastructure demand there.
The company said Tuesday the share of Nippon Hume Concrete (Thailand) Co., a manufacturing subsidiary, will be transferred on Wednesday to Mongheng Group Co., an investment arm of the head of Bangpa-In Concrete Pile Co., a leading concrete construction material maker in the Southeast Asian country.
Humex (Thailand) Co., Nippon Hume’s investment entity that had held 75.95 percent of the divested unit, will retain the remaining 15.95 percent share. A spokesman for the Tokyo-listed concrete construction material maker did not disclose the transaction value.
Bangpa-In Concrete is one of Thailand’s largest firms in the sector and produces a wider range of products than Nippon Hume’s local manufacturing arm, according to the spokesman.
Through the share sale, the divested firm can provide additional production capacity to the Thai group, which has a number of clients in the property and infrastructure sectors, he said.
The Japanese group will share its expertise in construction and engineering work and patented technologies with the partner for future projects, he said.
The concrete products of both groups are widely used in the foundation work for office buildings, hotels and hospitals, as well as bridges and elevated roads, according to the spokesman.