Japanese rental company Kanamoto has formed a rental joint venture with Singapore rental company JP Nelson Equipment (JPN).
The new joint venture will be 70% owned by Kanamoto and 30% by JP Nelson and will be called Kanamoto & JP Nelson Equipment (KNE). It will target specialist equipment for ground improvement and tunnelling equipment in Singapore and act as a "bridgehead" for Kanamoto to develop further rental operations in South East Asia, Oceania and India.
The executive board will comprise three Kanamoto and two JP Nelson executives. Managing director will be Tetsuo Kanamoto, who is a director of Kanamoto and manager of business coordination at the company's head office, while JP Nelson's representatives are Nelson Lim, JPN's managing director, and Teo Yew Boom, JPN general manager.
Kanamoto said in a press release that the joint venture was part of its 2010-2014 strategic plan to grow through acquisitions in Japan and by expanding internationally.
"Construction demand in Singapore is brisk, and sufficient construction equipment rental demand is expected because of major projects, including subway works and the marina Coastal Expressway", said Kanamoto in a statement.
"[And] the new firm will be positioned to fulfil the role of bridgehead for the business development that Kanamoto Group is seeking in South East Asian countries and in regions such as Oceania and India."
The joint venture will start renting equipment from March and annual revenues are expected to reach S$3.8 million (€2.2 million) in fiscal year 2013.
Kanamoto is one of the top four equipment rental companies in Japan. In recent years it has opened rental operations in Shanghai, China, where it has a joint venture with a Chinese trading company, and in Hong Kong.
Founded in 1992, JP Nelson sells and rents a variety of construction and specialist equipment to the engineering, construction, shipyard/ship building, oil & gas, and offshore industries in Singapore. It has crane rental operations in the Middle East and also operates on Batam Island, Indonesia.