Japan’s ‘big four’ rental companies - Aktio, Kanamoto, Nishio Rent All and Nikken – have formed a joint venture company with Mitsubishi Corp to provide wholesale excavator rental services to rental companies worldwide.

The move, announced earlier this year, aims to help the four companies dispose of used Tier 4 engine excavators that it will be unable to sell in Asia because of the lack of appropriate fuels. Asia has been the traditonal outlet for used machines from the four rental companies.

The new business, Diamond Construction Machinery, will provide “wholesale rental services of hydraulic excavators to companies engaged in the rental of construction machinery”, said a statement. The company will also use Mitsubishi’s global network of offices to help sell used equipment.

The partners said in a statement; “The new company will undertake to gain a deeper understanding of the machinery rental business through practical research in an effort to contribute to reducing the costs incurred by client companies while at the same time improving capacity for effective operation in the market.

“The overall aim of the new company is to expand the wholesale rental business to other companies engaged in machinery rental.”

Japanese regulations on NOx emissions will apply to engines over 56 kW from 2014 to 2015. These regulations are equivalent to Stage IV in Europe and Tier 4 in the US.

Diamond Construction Machinery was established in May this year and is headquartered in Tokyo. Its president is Mr Yoji Taguchi, a former Mitsubishi Corp executive.

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