Algeco starts renting in Russia

Algeco has established portable accommodation rental businesses in Moscow and St Petersburg, Russia. The company already rents cabins in several eastern European countries - including Czech Republic, Estonia, Lithuania, Poland, Romania and Slovakia - but this is its first move into Russia.

The new subsidiary was officially registered with the Russian Federation on 12 August and the plan is to start renting immediately in both Moscow and St Petersburg, with around 20 units in each city.

The business will be run by a team of ten people under the management of newly appointed director of Algeco Russia, Steen Sorensen, who has joined Algeco after an 18 year business career, most recently as CEO of the Russian subsidiary of Palsgaard, a Danish manufacturer of food ingredients.

Mr Sorensen, who will be based in Moscow, said; "Our aim is to have a fleet of 1000 - 1500 units within a year. We will begin operations immediately at the two depots in St Petersburg and Moscow with 20 units. The opening of depots in additional cities [Yekaterinburg, Kaluga, Kazan and Samara] will take place in the second half of 2009."

Bruno Roqueplo, European chief executive officer at Algeco Scotsman, said prospects for the modular space rental business were excellent; "This new expansion entry confirms the group's growth strategy, which is resolutely directed towards markets with strong potential, such as Russia."

Algeco said the Russian company would "guarantee clients increased flexibility and reactivity given its close proximity to them, a formula which has contributed to its success in Europe."

The Russian operation joins an already massive European Algeco business, with a fleet of 230000 modular space and storage units rented from over 100 locations in 16 European countries. Algeco is part of Algeco Scotsman, which has a total fleet of more than 335000 units.