Kanamoto said the move was part of a strategy to respond to the current decline in Japan's construction market, with the company trying to grow its market share domestically and look for opportunities outside Japan.
"By establishing a Hong Kong affiliate, Kanamoto will seek to create a front-line base to sell Kanamoto's used construction equipment...and to aggressively develop Kanamoto's main business of construction equipment rentals", said the company in a statement.
Kanamoto said Hong Kong had several large scale infrastructure projects planned "in rapid succession", and that it would be well placed to provide specialist equipment for submarine tunnels and subway works.
The subsidiary, Kanamoto (KH) Co Ltd, which is based in Tsimshatsui, Kowloon, opened its doors in late June and is being managed locally by chief operating officer Ken Kitagawa. Chief executive officer of the business is Tetsuo Kanamoto, a director and corporate officer at Kanamoto, and Kanchu Kanamoto, president and CEO of Kanamoto, who are both based at Kanamoto's head office in Sapporo, Japan.
In April this year Kanamoto acquired the four rental businesses of Narasaki. It also operates rental subsidiaries in Shanghai, China and Guam.