Showa Leasing Co. 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 local contractor EEI Corp. and Japanese crane leasing firm Saiga Co. to launch 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 a 46 percent stake 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 infrastructure development in the Southeast Asian country.
EEI is also the Filipino partner in a joint venture with three Japanese contractors to build stations and tunnel structures for the country's first subway line, which is expected be open in 2022 with financial aid from the Japanese government.