Japan’s largest equipment rental company, Kanamoto Co., based in Sapporo, Japan, recently reached an agreement with Shanghai-based Shanghai Miyuan International Trading Co. Ltd., and Tokyo-based Orix Corp., to establish and manage a joint venture rental company.
The firm, Shanghai Jinyuan Rental Co. will be based in Shanghai and concentrate on construction equipment rentals as well as the import and export of construction equipment and materials. Shanghai Jinyuan Rental Co. will be Kanamoto’s first overseas business venture.
In a statement, Kanamoto officials said the construction of large-scale infrastructure projects in China, including the development of major expressway networks is expected to continue even after completion of large-scale projects such as the facilities for the Beijing Olympics and Shanghai World Expo. The three joint venture partners formed the company to foster the growth of the equipment rental market in China, combining Kanamoto’s construction equipment rental knowledge and experience, Shanghai Miyuan International Trading’s local customer relationship management capabilities and Orix Corp.’s financial functions.
The partners plan to establish the new company in October and begin business operations before calendar year-end. The partners plan to appoint two directors from Kanamoto, two from Shanghai Miyuan and one from Orix Corp. The president and deputy general manager will be from Kanamoto, the vice president and general manager, finance and accounting from Shanghai Miyuan.
The initial investment will be about U.S. $600,000.