Sumitomo expands rental division with Indonesian deal

Sumitomo Corp of Japan has acquired 100% of the shares of Indonesian pump rental company PT. Resource Equipment Indonesia (REL). 

REL, which is based in Balikpapan, Kalimantan, rents large pumps mainly for mining dewatering operations in Indonesia. It was founded in 2010 and employs 70 staff.

REL specialises in renting large pumps to tjhe mining sector in Indonesia. (Photo: Sumitomo)

The acquisition was made through Sumitomo’s wholly-owned subsidiary, Aver Asia, an aerial platform rental business based in Singapore.  Aver has rental locations in several South East Asian countries, including Indonesia.

Sumitomo said the deal will allow Aver Asia to cross sell its existing construction equipment fleet to REL customers.

REL offers pump rental with experienced operators, providing installations tailored to each applications, as well as operational and maintenance support.

According to REL’s website the owners of the business were Tony Ryder and David Tilbrook. Sumitomo has not said whether they will retain roles at REL following the acquisition. The two are experienced in water management technology, being involved also in Fluid Equipment Australia.

The deal further expands Sumitomo’s involvement in the equipment rental sector. It has been an investor in US rental business Sunstate Equipment since 2010 and acquired Aver Asia in 2021.

Sumitomo said; “Indonesia is expected to experience high growth supported by a surging population, and there is great potential for acceleration in mechanization and rental demand driven by economic development.

“Aver Asia has expanded its business in the country primarily in the construction sector. With the acquisition of REL, it will gain specialized knowledge of large pumps and a new customer base together with access to the previously untapped mining industry.

“By cross-selling with the existing construction equipment fleet, Aver Asia aims to expand its business in the high-potential Indonesian market and contribute to the entire region as Aver Asia Group.”