In April 2006, CVC Asia Pacific Funds acquired Shinwa from SBI Capital. Established in 1977 as a family-owned business, the company has built a leading position in the manufacturing of scaffolding equipment throughout Japan. Shinwa’s core area is system scaffolding, a modular system of interlocking poles, platforms and bases that can be constructed in varying forms to accommodate structures being built.
Although system scaffolding equipment is more expensive than traditional scaffolding, it has established itself as the preferred technology because of reduced assembly times and easier transportability, both factors leading to an overall lower total cost of implementation.
The company displayed attractive leadership cost relative to competitors given the company’s ability to purchase raw materials cheaply and operate factories efficiently. The management also have a clear track record of growing the core business and improving financial performance over several consecutive years, demonstrating promising growth prospects of the business, particularly in eastern parts of Japan, including Tokyo.
Shinwa continues to maintain top market share in Japan’s system scaffolding market with our core product Shinwa Catcher. We have also diversified our business to pallet products for industrial customers by taking advantage of our metal processing skills, while preserving high standards of safety, quality, delivery and cost performance.