Japan's Showa Leasing to launch crane renting in Philippines
MANILA, NNA - Showa Leasing Co. of Japan will launch a crane rental service in the Philippines with local and Japanese partners, anticipating demand from President Rodrigo Duterte's “Build, Build, Build” infrastructure development program.
The company plans to form a joint venture with major local contractor EEI Corp. and Japanese crane leasing firm Saiga Co. to begin the service in October, Showa Leasing said last week.
EEI, the construction arm of conglomerate Yuchengco Group of Companies, will hold a 40 percent stake in the venture with capital of 52 million pesos ($1 million), while Saiga will own 46 percent and Showa Leasing the remainder, according to Showa Leasing's statement.
The three companies aim to cash in on rising demand for construction machinery, driven by various infrastructure developments in the Southeast Asian country.
EEI is a single Philippine partner for a joint venture with three Japanese construction firms to build stations and tunnel structures for the country's first subway, which is expected be partially operational in 2022, with the Japanese government's financial aid. (NNA/Kyodo)