An internal combustion Heli forklift

Anhui Heli Forklift Group, China's largest forklift maker by sales volume, is investing RMB 60 million (USD8.1 million) in expansions of its axle and truck production lines.

Phase three of the Anqing axle plant spans 130 acres (52.6 hectares) and is under construction in Jibao, in the central province of Shaanxi.

The plant will make 65,000 axles each year, an official from Anhui Heli told Forkliftaction.com News, requesting anonymity as he didn't have permission to speak on the record.

Operations are expected to start in October 2008 and the factory will cater for the western China market, Zhang Dejin, group vice executive manager, was quoted as saying last month by the Hong Kong newspaper Wen Wei Po.

Anhui Heli is also building a plant in Henyang, in the southern province of Hunan, which will make 2,000 trucks a year, according to the unnamed company official.

The newspaper report cited Zhang as saying the 120 acre (48 hectare) Henyang plant will begin operations this year and specialises in niche products such as explosion-proof forklifts.

It will help the company tap markets in southern China and South East Asia, Zhang reportedly added.

The Anhui Heli official told Forkliftaction.com News that total sales volume for calendar year 2007 is likely to hit RMB7 billion (USD949 million), with exports comprising 25 percent. He also said that its export growth rate grew by 50% this year, compared to 2006.

Anhui Heli sees its main market growth in exports, especially to North America and the European Union. The company exports to more than 100 countries and its main market is in harbour services.

One way to boost sales is through its current practice of "aggressively" developing its sales agents network in each country, the official said.