Hertz Equipment Rental Corporation (HERC) has expanded its operations after opening an office in Shanghai, China.

HERC, a wholly owned subsidiary of The Hertz Corporation, will kick off its rental business in China with an initial product line of aerial lifts, air compressors and generators. The company plans to expand the collection to include cranes, excavators, rollers and wheel loaders.

Paula Rivera, spokesperson for HERC, says the company does have plans to add forklifts to its China fleet.

Rivera says the move into China is a part of HERC's overall growth agenda.

"The company has been looking at establishing a presence in developing regions," she says. "While the equipment rental industry is relatively new to the Chinese market, the country's industrial construction spending is projected to be greater than that of the US for 2008."

HERC believes by establishing a presence there now, the company will be able to capitalise on the growth of the Asian marketplace.

HERC aims to service many of the growing industries in China such as manufacturing, shipbuilding and the industrial and construction markets.

Rivera says HERC will target multinational companies already familiar with the rental concept.

"The company is also looking to serve large Chinese contractors and state-owned enterprises such as refineries, highway construction and mining," she explains.

Operating as its own foreign-owned enterprise with a national rental license, HERC will seek to work with local Chinese partners and to identify potential regions within the country for greenfield expansion.

Rivera says HERC has relocated Mark Alewel, one of the US vice presidents, to manage the Chinese operation and work to establish HERC's presence in the region.

"Alewel and his team have been fortunate to hire a group of employees with previous rental experience, one of whom specialises in generators - a valuable skill considering the current demand structure within the market," she adds.