Algeco Scotsman forms Chinese joint venture

Algeco Scotsman has entered into a joint venture with Beijing Chengdong International Modular Housing Company (Chengdong) to manufacture, rent and sell modular space in China under the Algeco Chengdong name.

Under the deal, which still has to pass Chinese regulatory approvals, Algeco Scotsman will hold a majority shareholding in the joint venture.

Algeco said in a statement that China was the largest construction market in the world and had significant growing needs for temporary accommodation in the energy, natural resource, industrial, commercial and major event sectors.

Chengdong, founded in 1998, is the second largest Chinese modular space company and has a leading position in the Beijing market. Algeco said Chengdong's design and engineering capabilities and its relationships with large Chinese engineering and construction firms were important elements to the partnership.

Jean-Marc Germain, president and chief executive officer for Algeco Scotsman, said the company was excited about the partnership; “We expect the use of both temporary and permanent modular solutions in this region to grow significantly over the coming years and we believe this joint venture will be able to meet these market demands by leveraging the respective strengths of Algeco Scotsman and Chengdong.”

Zhao JunYong, chairman of Chengdong, said; “Our joint venture with Algeco Scotsman is a strategic fit for Chengdong as we continue to meet the rapidly expanding modular building needs in China".