TRACTORS Malaysia Holdings Bhd will be opening 3 more Cat Rental Stores 1 each in Bintulu in May, and in Butterworth and Kuantan towards the 2nd half of this year.
Tractors Malaysia (1982) Sdn Bhd sales director Chong Kwea Seng said by having more stores nationwide, the company would be able to serve its existing clients better and to attract new customers.
He said the decision to open another 3 stores was largely attributed to the good response received by the company to its 1st store, which opened in November 2001 in Petaling Jaya.
Cat Rental Stores started with 20 units of heavy equipment and, today, has more than 300 pieces of equipment worth RM20mil that generate about RM100,000 in rental monthly.
Chong said with the new outlets it currently has two, one each in Petaling Jaya and Johor Baru the company would be able to cover the central, southern, east coast and east Malaysia regions.
Heavy equipment rental is a growing business worldwide, especially since the mid-1997 financial crisis, and companies now prefer to rent rather than to own, he said.
Chong said companies in the construction, manufacturing, plantation and industrial sectors could actually reduce their operating cost by renting, rather than owning, heavy equipment.
He said they would save on spare parts, components and maintenance works on the machines.
Chong was speaking to reporters at the opening of its second rental store in Johor Baru at Jalan Skudai.
He said the Johor Baru outlet has about 20 pieces of equipment including for earthmoving, lifting, and material handling for rental and was looking to increasing the number to between 50 and 100 units worth RM5mil within a year.
Chong said there were also other companies offering heavy equipment for rental but they only specialised in certain machines, whereas the company offer a wide range of equipment.
He said the company was also talking with the Port of Tanjung Pelepas and Penang Port to offer maintenance works for port equipment, similar to what it is doing at Westport and Kuching Port.